As we get older, we all dream of leaving behind a legacy of generational wealth. We want our children, their children, and their children’s children to remember the values we worked our whole lives to instill into them. We want for them to have financial stability and have better lives than the generation before. Well, this dream can pertain to a legacy of financial education!
Finances are tough to get good at. It takes a lot of trial and error to learn how to navigate the world of money, investments, and budgets. The truth is, financial education can be a frightening subject when you have nobody to help you become a money master yourself. It’s no longer taught in schools, there aren’t many tv shows that talk about it… really, it’s up to you to learn the basics and figuring out how to manage your wealth responsibly. And, learning on your own can be challenging!
This is probably why you’ve found money creeping its way into your legacy daydreams. Money certainly plays a much larger role in happiness and success than most of us would like to admit. Money gives us freedom, the freedom to spend our time how we’d like. While you don’t need to be a millionaire to be happy, it certainly doesn’t hurt.
So, now we’ve got you asking, “How do I even begin to leave a legacy of financial education?” Well, no worries! Walt the Vault has got your back! Here are some tips for leaving behind a legacy of financial education to guide the generations of your family to come!
1. Educate yourself first. It’s a bit hard to even begin building a legacy of financial education without any knowledge on the subject. We won’t leave you hanging, though! There are tons of financial literacy resources out there to help you learn right alongside the little ones!
2. Give them real-world knowledge! Let’s face it, kids don’t exactly have the biggest attention spans. Keep them interested in their learning by getting your little one involved in some small real-life financial situations. This allows them to explore finances in a way that will stick with them forever! You can try to get them involved in investing, involve them in the family financial discussions, or grant them their own allowance!
3. Be the example. You are truly a role model to that little one. Show your money master skills to them in your everyday life. As they watch you budget, invest, and continue your own financial education, they’ll be excited to follow your lead. You can even show them mistakes you made in the past and what you learned from it. Also, don’t be afraid to say “I don’t know” and research the answer together. This will teach kids researching skills, as well, and how to ask for help.
4. Start saving! The magic of compound interest is one of the best ways to make money over time. If you can invest a little bit of your salary, it will definitely add up over time. You can also make special savings accounts for your children or grandchildren. It doesn’t have to be much, but as time goes by, the value of that money can double over and over again. On average, the stock market doubles every 7-9 years. So, by the time your child is 18, if you started saving since they were a baby, the money you’ve save will have doubled! It just takes self control, commitment, and patience.