“If you can’t explain it to a six year old, you don’t really understand it.”
~Richard Feynman (more or less)
There’s a surprise upside to teaching your kid good money habits: you improve your own money habits along the way.
- Teach your kid to separate savings from every incoming dollar, and you’re reminded to automate similar allocations from your own paycheck.
- Teach your kid to set aside a charitable giving share from every incoming dollar, and you’re reminded to be more consistent with your own philanthropic efforts.
- Teach your kid to delay gratification by patiently saving for specific goals, and you’re reminded to clarify your own financial goals.
- Teach your kid to know where every dollar is going, and you’re reminded to take a closer look at your own expenditures.
- Teach your kid to talk candidly with you about their money habits and values, and you’re reminded to be transparent and open in your own money conversations.
- Teach your kid to keep an eye those sneaky monthly charges from the gaming, music, or video services they may no longer be using, and you’re reminded to scrutinize your own recurring bills.
- Teach your kid about the incredible power of compound interest over time, and you’re reminded to make sure you’re adequately investing your own savings for the long haul.
- Teach your kid about the costly reality of a borrowing money, and you’re reminded to place a higher priority on paying down your own painful debt.
- Teach your kid to capitalize on generous matching offers, and you’re reminded to maximize your own opportunities to claim free matching funds from your employer.
If you start explaining money to your kid, your own understanding will improve. The good habits will follow. For both of you.
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