Teach Your Children About Money & Learn from Today’s Money Mistakes

Troubles from Wall Street to Main Street…

How’s the value of your real estate lately?  How about the value of your 401K, IRA and other retirement accounts?  Are you spending a lot more money on gas, food, insurance?

Although markets normally experience ups and downs, the economic troubles our country has been facing for about a year now have been largely been caused by “financial experts”, elected officials at all levels of government and the general population.  Easy money (extremely low interest rates) have fueled excessive overspending and foolish investing.  The good news is downturns actually present many opportunities IF you are financially fit enough to take advantage of them.  Even if you’re currently struggling with big money challenges, it’s a great time to teach your children about money, so they don’t make the same mistakes. 

For starters, teach your children these simple but crucial money concepts:

1.  Only buy what you can afford to pay for today, not tomorrow.  The first question is, do you really need it?  Wait a few days and ask yourself if you still “need it”.  Then, ask if can you really afford it now?  Do you have any outstanding credit card debt that should be paid off?  Have you saved enough money this week for your children’s college fund, vacation, holiday shopping and your retirement?

2.  Save early, save often, save as much as you can and then save more!  This concept is hard to adopt when we are consistently tempted with advertising offers and social pressure to buy, buy, buy!  But, you must set savings goals and you must have the discipline to stick to or better yet to exceed your goals.

3.  Buy Low, Sell High.  If you follow the first two principles, you will have lots of extra money available to invest in assets (stocks, bonds, real estate, gold and others) at bargain basement prices.  This is how many people build significant wealth.  If you and your family are not well positioned now, start preparing for your future and your children’s future NOW.  I guarantee our economy will bounce back and yes, several years from now it will also “crash” again.

For more money tips and a new innovative DVD that teaches kids, teens and adults about money check out:  http://www.moneylessonsforlife.com