We’re on our final tip on how to help kids think like a millionaire – and this is one that most adults do regularly (or should do) as well:
The only way you know where your money is going and why is to have a budget. Sit down with your child and talk about the expenses in their life that you want them to take charge of. Depending on the age of your child, that could be anything from the expense they manage with their allowance to the expenses they earn money to cover when they are in high school and college.
Make it clear early on what expenses they will be responsible for and give them enough time to come up with a plan to cover those expenses. Those expenses become the “buckets” in their budget that they will need to allocate money to each month.
It’s not easy to become a millionaire. But it’s possible. The key is to start now. Learning to make tough choices, delay gratification and save and invest rather than spend worked for Warren Buffett. They can work for your child too.
I hope you’ve enjoyed this series of tips. If you missed one, a link to each of the other four tips is below. How do you help your kids practice their money skills? Do you have an activity that your children enjoy and allows them to practice their money smarts? If so, please tell me about it – either send me a note (Susan@moneysavvy.com) or add your comment to this post today. I’d love to hear what you are doing too!
Tip #1: delay gratification
Tip #2: work and earn money
Tip #3: save money
Tip #4: live well beneath your means