When it comes to money, many children are under prepared for what the real world has to offer. Many parents rely on the school system to teach their children everything there is to know about money, but sadly this just isn’t the truth. The school system is severely lacking when it comes to teaching students about even the most basic money principals and so it’s up to the children’s parents to teach them what they need to know about money.
Lesson 1 – Earning Money Takes Time and Effort
Accumulating wealth takes time and effort. Most people start out earning peanuts at their first job and gradually work their way through a number of jobs aiming to always earn more money. What most people fail to realize is that these things take time and good things come to those who work hard. Sitting around waiting for your situation to change won’t do anything, you have to work hard and make the most of any opportunities that come your way.
Lesson 2 – Saving Money Is Easier Than Earning It
When I first started learning about money, I was always so busy looking to make more money, that I neglected the truth of the matter – it’s far easier to save money already earned, than it is to earn more money. This takes me to my final point.
Lesson 3 – Think Long Term
Starting thinking long term with your money. Invest money wisely, make use of compound interest and live within your means. Start thinking about retirement and how you plan on getting there, what are the key milestones along the way? The sooner you develop a plan, the sooner you will start to realize it. Most people I know suffer from “short termism” and can only see what’s directly in front of them, they have no plan, no savings and no idea what the future holds for them. It’s not difficult to start setting goals and to be aware of what your end goals are.
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