Teach Your Children

Our children are financially handicapped. In many cases, they graduate from high school and college ill-prepared to face the real world. They are taught enough to take the SAT and GRE exams, but still have a low IQ. Yes, they can read and write, but their financial IQ is low. Our children also need financial intelligence.

College students are inundated with credit card offers and often graduate up to their eyeballs in debt. Without a proactive plan, many will experience a lifetime of struggling with finances. Most schools do not teach personal financial management.

The Bible is full of advice about money management! Nobody will teach your children unless you do. Proverbs 22:6 says “Train up a child in the way he should go, even when he is old he will not depart from it.” Be intentional. Here are some ideas to help them learn:

• Budget  Do you need a starting point? Start here: give (10%), save (10%), spend (80%).
• Spending  Let natural consequences teach your children. When they have spent their monthly allowance, do not rescue them with more money.
• Debt  The Bible discourages the use of debt. Your children need to learn how to delay gratification.
• Income  Improving cash flow has two sides: decreasing spending and increasing income. Proverbs 24:27 instructs “Prepare your work outside, and make it ready for yourself in the field; afterwards, then, build your house.” In other words, work hard at preparing for a career first. Don’t buy stuff before you can afford it—be patient.
• Saving/Investing  Save for an emergency fund. Teach your children to have margin in their lives. Help them learn about different types of investments and show them how compounding works.
• Giving  Scripture teaches in Deuteronomy 9:5 that it is God who gives us the ability to create wealth. Be grateful. Remind your children that God’s design is to share with those in need.
  

All biblical financial principles flow from the idea that God owns it all—we are just stewards. Fortunately, Scripture shows us how to be successful in this area. Our children need our instruction. They need our model. Luke 6:40 says that “Everyone, after he has been fully trained, will be like his teacher.” Teach your children.

The views are those of Bruce Olmstead and not those of Summit Brokerage Services. Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested.  No system or financial planning strategy can guarantee future results