Family Money Values

When I flipped open up my weekend edition of the Wall Street Journal, I was greeted with the headline “Is There a Cure for Financial Illiteracy?”

http://online.wsj.com/article/SB10001424052748703280004575309143171720002.html

In the column by Karen Blumenthal, she discussed what the US government is doing to help Americans become more financially wise – oh, the irony – our government offering financial education! She concluded her column by mentioning what we should be teaching our children.

This got me to thinking: Who do you want to teach your children about money?

Well, not the government, they are budget-challenged!

What about the media? The media teaches them to be the ultimate consumer. We live in a world where they see advertisements for all the latest toys and gadgets. They watch shows where people live richly and most likely beyond their means. They go to school and have peer pressure – who has the latest cell phone, designer clothes or shoes.

What about our school system? The educational system can teach your children economics and math – they may be involved in a “stock market game” in high school. But school only teaches book concepts at best.

The best teacher for your child is – you. Only you can tell impart the money values that you want your child to live by.

Take the time to think about the following topics that related to your own money values:

• Earning
i.e. get paid what you are worth, work hard for your money, enjoy your work
• Spending
i.e. make good choices, research prices, comparisons, look for good value, you get what you pay for
• Saving
i.e. save for a rainy day, save for big items, pay yourself first
• Investing
i.e. safety vs. speculation, learn your risk tolerance, understand what you are investing in
• Giving
i.e. importance of giving back to the community or organizations that mean something to you

Each family member will have different values on each topic so make sure you compare your feelings on each topic before sharing with your children. You want to show a united front. Taking time to do this will avoid conflicts within your family as you teach them about money.

So, is there a cure for financial illiteracy? Yes, and it starts with you and your family money values.