I’m not financially confident. At least not yet.
I don’t want my kids to turn 31 and still be working on financial confidence, ya’ll. They need to be sure of themselves as soon as receive their first W-2s, their first paycheck, and those monthly bills. It’s devastating to think that so many of us fail to become financially mature before such a late age, but we’re just not being equipped with the proper tools and knowledge that prepares us for being adults with our money.
Oh, we know what we’re supposed to do in theory, but practically speaking – common knowledge about money doesn’t translate into financial freedom. When learning something, the lesson taught needs to be put into action. We need time to think, feel, and apply theories.
I’m so glad I found this book because it is basically a handbook on how to teach your kids to not go wrong with money. It’s more than a book on raising financially confident kids, it’s a book that expels upon the truths regarding consumer debt, student loan debts, and financial education that children are failing to receive in schools.
This book is written by a woman who triumphed over her own financial failures and created a plan with her husband to educate their children about finances. Along the way, she managed to learn a thing or two herself. Crawling out of debt and eliminating a sense of entitlement in children is no easy feat, but she managed to do this and live to tell about it. This book explains her journey and gives us an awesome guideline that can help us raise financially confident kids too.
There were two quotes I took away from this book that has had an impact on my plans for financially educating my daughter.
Those two quotes are: “We don’t choose to spend our money that way” and “Don’t live to consume.”
“We don’t choose to spend our money that way.”
I don’t know how many times in my life I’ve heard the phrase, “I’m broke.” Growing up, it sound more like, “I ain’t got no money for that.” What about, “We can’t afford to be wasting no money on that.”
Hear things like this so many times and you’ll begin to believe they are true. They affect your psyche in many ways. You become afraid to ask if you can go on a field trip because you don’t know which remix of the “I’m broke” song. You don’t want to ask for new gym clothes to wear during P.E. You basically want to sit in your room, be as quiet as you can be, and hopefully forget about how much of a financial burden you are. (I’m just sayin)
This is what it feels like when a child hears the “I’m broke” remixes, by The Parents (imaginary singing group, of course) their entire childhood. I won’t make that mistake again, so I appreciate Mrs. Hunt’s advice to change your mindset on how you view your financial situation.
Everyone can afford the things they want to afford. Telling your kids you are broke is discouraging. However, telling them you choose to spend your money in other ways does something completely different. It shows your child that you have values. It shows them that money is a tool to be used wisely. I choose to show my children those things and break that generational attitude passed down to me about money.
“Don’t live to consume.”
If someone asked your kids, “What do your parents like to spend money on?” What do you think their reply would be? Are you a heavy consumer of the latest clothing trends? Do you keep up with every iPhone that hits the market? Is your closet lined up with all the Jordan’s ever created?
There’s nothing wrong with this unless you’ve got the consumer debt to go right along with those clothes, iPhones, or Jordan’s. And if this is the case, you’re not a consumer of just the products – you’re a consumer of debt.
This isn’t something that I want my kids to think of when they think about my spending habits. I don’t want to be a consumer of everything – especially of debt. I’d rather decrease my consumption of debt and random things and increase my savings account.
I want to pass on wealth to my children that extends beyond anything I can pass along in a checking account. I want to pass on the wealth of financial wisdom. to do this, I can’t be a consumer of things that lack true value.
What You’ll Learn From This Book
Raising Financially Confident Kids will cover teaching kids about giving, saving, and creating a spending plan. It covers all of these topics in addition to the downfalls and less-knowns regarding debt and how to be a responsible consumer.
It encourages teaching using real-life scenarios that allow kids to explore scenarios involving debt and calculating interest with real credit offers or shopping websites. Hunt describes in great detail the program that each of her children went through from their pre-adolescent to teenage years.
At age 11, each of her sons began a program that involved them receiving a monthly salary from their parents. They were responsible for saving a portion of their money at the bank, never borrowing money from themselves or parents, and creating a savings plan. Their savings plans had to cover pre-determined purchased decided upon by the parents that were appropriate for the child’s given age.
Upon graduating high school, the children would continue to receive their monthly salary for the summer and then they were cut off. They hadn’t been required to find work while in school, but it was expected that the summer after graduation they would find their own job and begin to carry themselves, so to speak.
Was The Book Worth It
Yep. It was definitely worth it because their plan worked. The details that were provided were not overwhelming, in fact, it was a rather simple process. The plan prepared their boys for adulthood. Financial responsibility was taught while the children were home versus the boys having a major learning curve once they were out on their own. At the end of the book, the mother shares the successes of each child and a few takeaways that would benefit many parents today.
Why Should You Read Raising A Financially Confident Kid
Our children are the next generation. As a millennial, I’ve been thrown a major learning curve when it comes to finances and I didn’t start to get my act together until around age 26 or 27. We need to prepare this next generation even if we’re still learning ourselves. The next generation are the ones that are going to be taking care of us! We can’t leave their financial futures in the hands of someone else. We have the resources and experience to equip them for success.
We can learn with and through our kids. It’s okay to teach and encourage someone without all the answers. No one knows everything! The only way we can learn is to continue seeking answers and solutions. Our kids are curious and hungry for knowledge. They need to be prepared to make strong financial decisions when they reach adulthood. It’s only right we teach them when they are so young and eager to learn.
Advertisers are targeting our kids young. They know that the easiest way to earn more money is to target the ones who have so much impact on their parent’s wallets. They also know that they have to prime their next generation of customers. So of course, Discover and Mastercard are going to create catchy and memorable commercials that will make our kids believe using plastic is a totally normal part of life. If we’re not ready to step in and teach them the dangers of debt, best believe that advertisers are ready to entice them with untruths.
This book covers all of that and then some! I’m not telling you this to make a sale (I mean this is an affiliate link, but nah, this issue is too big just for me to make a quick buck). I’m sharing this information because if you have kids and you want them to receive a better financial education than you did – this is where you need to start. Purchase Raising Financially Confident Kids and do a service to yourself and your children’s future. Read the book, take notes, and apply the principles. I plan to and if you decide to, I’m sure we won’t be sorry with the outcome.
Have you read Raising Financially Confident Kids? If so, what was your main take away from the book? If not, do you plan to read it? What do you hope to learn?
