There’s a deadly cycle when it comes to being poor. When you aren’t educated on how to be good with money, your children aren’t going to be educated on how to be good with money. If you are bad with money you need to get better for future generations. The only thing I ever learned growing up was about investing in stocks. I never learned about making a budget and it never occurred to me that I even needed to know because no one ever told me I needed to know. The only thing kids know about personal finance is that you need to work to pay bills. That’s it. You need to break the cycle.
Get An Education
If you don’t know about good money habits, how can you possibly have them? The only way to learn that way, is to make mistakes. That is the long hard road. Take the easier route and learn from other people’s mistakes. Read a book, read blogs online, just learn from people before you make those mistakes. When you learn something be sure to pass it onto your children so they have a lesser chance of making those mistakes as well.
Stop Wanting What Other People Have
“Ooooo my neighbor just got a new 52 inch Hi def TV. It looks fantastic. I think I’m going to get one. I can get one at Rent-A-Center and make payments for a couple of years.” Don’t! Your neighbor has that because they can afford to buy one or are willing to put their future at risk to own something that looks cool. Don’t be that person that does the latter. You can’t define your life by what you own. If you really do define yourself by what you own, then earn more money so that you can buy what they have instead of ruining your future by paying for it with payments that end up costing you thousands of dollars in interest.
Don’t Spend All Of Your Money
This should be a given but how many people have a lot of money by spending it all? If you live paycheck to paycheck it means you spend it all. Stop doing that! Find places where you can cut back your spending. Find a cheaper place to live, stop eating out, stop spending money everyday. If you can’t do that then start earning more money so that you can put some away for a rainy day.
Having bad financial habits will most likely cause your children to have the same habits. Change your habits before it becomes too late and the cycle is started over again. On your journey to become financially independent bring your kids for the ride. Break the cycle of being financially poor.
Do you have any habits you don’t want your kids to have? Why do you have those habits if you don’t want your kids to have them?