Why Is Money Important In Life?
Why Is Money Important In Life?
I believe it is extremely important for everyone to learn how money works and how to manage and multiply it. I wish these money skills were taught to our children in schools more than they are at the moment. Most people consider it taboo to discuss money and to share their financial situation and knowledge with their children.
So, why should you teach your children about money? Why is money important in life?
Money is important in life because it is required for us to pay for our basic survival needs like food, shelter, healthcare, and education. Lack of money for these needs can lead to unhappiness, stress, worry, and inability to create a life of meaning, and impact and keep us from the fulfillment of our purpose which is why we are on this earth at this very moment.
So, you may be wondering, what money lessons should parent(s) be sharing with their kids before it is too late? Let’s discuss that next.
7 Money Lessons Every Parent(s) Must Teach Their Kids
Teaching our children about money is very crucial and necessary for their happiness. You have to know how to handle your money in life and it should not be deferred to someone else to do. No one else will care about it as you would. Let’s discuss seven things that you can teach your kids so they can be financially successful in life.
What Is Money
Teach them that money is a tool that helps you sustain the mission and lifestyle that you want to live. It is neutral and does not have positive or negative energy associated with it. You give it energy based on your perspectives, identity, belief, thoughts, and relationship with it.
In other words, if you have limiting beliefs about money and a negative relationship with it then you will attract and get negative experiences with it and if you have a positive relationship with it then you will get positive experiences with it.
If you are scarcity-minded and tell yourself that money does not grow on trees, it is evil, not good, and believe that all rich people are greedy then you will block yourself from being rich. Money amplifies who you are and does not change you and makes you a bad person.
If you have been blessed with the skills then use them and aim to make a lot of money because you can do a lot of good with it. You can give to others endlessly. It is not like giving your time which is in limited supply and there is only so much of it you can give in service to others.
How Money Works
They need to know how money works. What is debt, what different types of debt, interest, inflation, and how do credit cards work? How the banking systems and accounts work, how banks operate, and how money gets in the bank and into your account before magically coming out of the machine or debit cards.
Different Ways To Make Money
Discuss the many abundant ways to make money that we have been blessed with in today’s day and age. Going to university and getting a job is not the only way to earn money today. Help them explore ways to earn money based on their interests and passion like starting their own online business.
Guide them to discover their unique gifts, natural talents, skills, passion, and purpose that they can use to do work that they love, and were born to do. Encourage them to figure out what kind of lifestyle they want to live and then calculate what kind of money and work will be required to sustain that lifestyle.
Instead of saying we cannot afford this instead say let’s figure out ways to make money and afford it. We live in a very abundant world that we can attract and experience with the right perspective, identity, beliefs, and thoughts.
Managing Money
Teach them to be responsible with their money and learn to save and keep as much as possible. It is not complicated to learn and educate yourself on money management. You have to commit to it and believe in your abilities. It is very important to form a habit of paying yourself first when you earn the money rather than paying everybody else first and then saving the leftover.
You can automate and save as much as possible at a minimum of about 10- 20% of your take-home income. Create a spending plan and have a category for money going towards your fixed and variable necessities for shelter, food, etc, financial freedom to invest and grow, long-term savings, giving, and some money for fun.
Setting Financial Goals
Teach them to set desired financial goals and create a plan to achieve them. For example, one of their goals could be a big purchase that they want to make like a car. Teach them to calculate how much money they will need to buy, maintain, and insure it.
Create a plan to earn the money, the time frame needed, and how much to save every week, or month and possibly decide on the type of investments to make to earn interest if it is a long-term goal that is more than 3-5 years away.
Multiplying The Money
They must learn investment skills so they can multiply the money that they work for. Your money should work harder for you than you work for it. The more money you can make from your investments the more you will have to enjoy and do good with.
Some of the investments they can look into adding to their diversified portfolio are ETFs, index funds, dividend-paying stocks, and real estate investment properties.
Giving
Generosity is a very important value to teach your children. Help them form a habit of designating a certain percentage of their take-home pay for giving. If you have been blessed with skills and the privilege of earning lots of money then you have the responsibility to give back.
The more you give the more you will be trusted to enjoy and distribute to others. There is nothing wrong or greedy about earning as much as you can so that you can share and give more to others endlessly.
Become your creator’s trustee and direct money where it needs to go. Always remember abundance is your birthright. Money is not the root of evil it is the love or obsession with money over and above anything else that is evil. Do not sacrifice your time with family, faith, morals, and values for it.
In conclusion, you now know that money is important in life because it is required to pay for our basic survival needs like food, shelter, healthcare, education, etc. Lack of money for these needs can lead to unhappiness, stress, worry, and inability to create a life of meaning, and impact and keep you from the fulfillment of your purpose which is why you are on this earth at this very moment.
The 7 money lessons every parent(s) must teach their kids before it is too late are what is money, how it works, different ways to make it, manage it, how to set and achieve financial goals, giving, investing, and multiplying it.
Next, read What Causes Money Blocks for further insights and tips