The 5 Secrets to Teaching Your Children Financial Independence

Teaching our kids to be financially independent is easier than you may think. Because of their youth and their curiosity about the world around them - kids are like little sponges, soaking up everything they can. By keeping this in mind, you can make almost any situation a teachable moment, and give them the foundation for a lifetime of success and financial independence.

• Teach your kids the value of a dollar - Kids aren't born with an ability to know a good deal when they see it, so you're going to have to teach them that this is a learned skill that can be developed over time. Beginning when they're very young, show them the relationship between work and money. You can add to this as they get older, but don't make the mistake of being so focused on finances that they develop the erroneous belief that anything worth doing must have a financial payoff.

Also teach them that some things simply have to be done, such as chores. If you don't, you run the very real risk of raising children who have the mentality that your role is that of servant/financial facilitator instead of parent/teacher. Remember, service plays an
important role in the development of a financially independent, successful adult.
• Teach Your Kids That Debt is NOT their best friend - Everywhere we turn, society teaches us that debt is a trusted friend, and that most debt is good. Debt is something that most adults struggle with, because we live in a "gotta have it right now society". Explain the inherent value in deferring wants until they can afford the indulgence. Not only will it cost your children less in the long-run, but they'll simply get more enjoyment out of the purchase knowing that it is theirs immediately. No "easy payment plan" or high interest rate to stand between them and the full enjoyment of their purchases.
• Give your kids the flexibility to waste money - Keep in mind that the development of financially independent children won't happen overnight. They will make their share of financial blunders. Let them make a few unreasoned and foolhardy expenditures with their own money. While they will regret having made these expenditures, it will also provide your children with real-world experience that hours of begging and pleading on your part simply can't match.
• Show your kids That You're Not Immune to Mistakes - While you want to give your kids some flexibility to make their own mistakes, some of the best opportunities that you'll have to teach them about financial literacy is by exposing some of your own mistakes. Before you indignantly deny having made financial mistakes, look carefully at your credit report.

When your kids make a financial mistake, you probably know about it immediately, because they will tell you or you might potentially hear their cries of anguish over the broken toy or the fact that they could have saved $10 by making a purchase at a different store. In your case, a financial mistake is either on your credit report or stored in your garage or a junk room in your house. Explain your financial shortcomings with your kids and they'll understand more quickly that they, too, will make mistakes.
• Teach Your Kids the Amazing Power of Giving - Giving is an area of life in which too many of us are lacking. By teaching your children the importance of giving at a very early age, you're laying the groundwork for a well-rounded, successful and financially independent adult. Whether you teach your children the importance of giving as part of their spiritual education or you choose to focus on secular reasons, the evidence is overwhelming that children who give become adults who give - and the returns of this giving are life-changing.

While the Bible teaches that those who give are rewarded many times over for their efforts, the rewards reaped as a result of giving are not always financial. A hug given to a child "just because" doesn't offer monetary reward, but the look of love in the eyes of your child will last a lifetime.

While there are many different things that you as a parent can do to teach your children to be financially independent, in most cases they are not rocket science. These common-sense steps will put your children squarely on the path of financial and personal success, financial independence, and will give them the self-confidence and high self esteem that they will need to accomplish their goals and reach their dreams.


Charrissa Cawley has a long standing reputation for excellence as a gifted speaker, real estate trainer and wealth coach. Her strength lies in training entrepreneurs in the areas of real estate, investing and financial literacy. Her passion is bridging the gap between learning and doing. She has helped thousands of entrepreneurs all over the world seeking financial growth by equipping them with the tools, resources and specialized knowledge to succeed. Charrissa offers accurate and proven strategies to investors of all different levels and is the founder of www.reiconferences.com, one of the fastest growing real estate investment training organizations in the US in addition to www.rewexclub.com , the top rated Real Estate Investor Community on the web today.