I was stunned the first time I realized that I, highly educated me, was totally ignorant when it came to managing money.
I was just turning 40 (yeah, I know – a bit slow) when me and my husband had to face the fact that our financial situation was not going to allow a high school education for our beloved teenage daughter. Never mind her 3 siblings!
Yes, we had a fairly good living, but we were perpetually in debt. Money was an enigma to me. It had a way of always disappearing, no matter how much came in.
So, for the first time in my highly educated life I had to admit that I was hopelessly illiterate when it came to money matters.
And I didn’t want that for my children.
In the following years we aggressively pursued a solid financial education for our offspring. Resources were not easy to find. As we had already painfully experienced in our own lives, traditional education does not provide financial literacy. And we didn’t have any millionaire friends who’d show us how to raise our financial IQ.
Luckily enough, we found a number of families who were on the same quest for practical financial education for their children, and they helped us on our way. Five years and many books and courses later, I can confidently testify that financial literacy is not beyond the layman’s reach.
In 2 years and 6 months we paid off the seemingly insurmountable debt we had, including our mortgage. The best thing is that we could teach our children in the process.
And I would like to share some of the insights we received that we teach our children to this day:
The first thing we did is consciously invest time in teaching them everything we learned. Financial and business topics were encouraged instead of being banned at the dinner table. We also studied our budget with them and allowed them to suggest changes we could make.
We limited their pocket money to almost zero, and offered them many options to work at home and earn a lot of money that way instead.
We continually encouraged them to think of small business ideas they could implement.
We inspired them to study about finances and money management, and gave less attention to their traditional curriculum.
Now that we have portfolios, we show them to our children and teach them to work for this type of passive income.
To this day we teach them to be generous with their money.
We are constantly on the lookout for good mentors in all business areas.