By Jeremy Squibb, Financial Life Planner at Serenity Financial Planning
As a child growing up, can many of us honestly admit to appreciating the value of money?
What it took to earn, what things cost, what we had, and that is was OK to have what we have, and others may not have as much, or may have more?
The lessons which generally shape us in life – and this includes in no small part our relationship to money, are very strong between ages 5-9. Our parents are superheroes, the world is magical, and yet, if you cast your mind back to your first experience with money, be it good or bad, it probably took place between those ages.
Despite this, the vast majority of parents hide the meaning, understanding and value of money from their children, leaving it feeling perhaps a little dirty, a secret, something we are not sure about. Maybe, reassurance, openness, honesty would teach very valuable lessons.
Maybe a weekend break costing £1500 a night may seem lunacy to many, but break that down into a structure of saving for the holiday of the lifetime over 4 years, great lessons and disciplines can be taught to our children.
Openness, diligence and reassurance will help us and our children to develop a healthier relationship with money.
Growing up, many people were taught not to speak openly about money because the subject was taboo. However, business tycoon Warren Buffett believes in the importance of teaching your children how to manage money and how to become successful. This idea spawned a cartoon series in 2013 called Secret Millionaires Club which teaches young children how to be financially savvy. Buffet believes it’s important for parents, wealthy or not, to teach their children the value of money at a young age.