What To Teach Your Kids About Money

Kumar Gauraw

I have two little boys and sometimes when they discuss about money, it’s fun to see the way they have a naturally abundance mindset. There is nothing they can’t afford. The big planes, the big cars, millions of dollars in their piggy bank to buy such things…. There is absolutely no limit on what they can buy.

What To Teach Your Kids About Money

We all had that abundance within us. But as we started to grow up, our self-image started to decrease along the way. Through the years of education, we start to believe that those cars, those big houses are not attainable in this lifetime and then, excuses take place of those dreams.

There are many reasons for that based on our individual circumstances. But it also has something to do with our limiting false beliefs, our thought process about money.

Living In Denial Is Not Good

I grew up watching Bollywood movies showing the bad guys being rich and good guys, poor. The basic feeling from stories I read or heard growing up, was that, the rich people rob the poor of opportunities and that is how they get rich. The social image was – being rich means being dishonest.

I’ve friends who work very long hours at their offices. Many travel from city to city every few months as their job requires. They don’t seem to be enjoying the process, but they’ve accepted it as a necessary evil. But when it comes to becoming financially independent, becoming wealthy , the same people do not hesitate to express something along these lines:

  • I am not money minded.
  • I am not that much behind money.
  • There are more important things in life than money
  • Money doesn’t bring you happiness

Somehow these statements do not sync with the way they work for money. What I realized is, living in denial not just makes our lives miserable, it also rubs on our children’s attitude and affects their future.

What To Teach Our Children About Money

But now, I know that it is bad to teach such things to our children. It is definitely bad to teach our kids that money doesn’t bring happiness and that they need to be dishonest to be wealthy. There are many great things to teach our children about money as well. Here are my favorite five things that I think our children should know:

1. Money Is An Essential Commodity

Money isn't the most important thing in life, but it's reasonably close to Oxygen on the 'gotta have it' scale. ~Zig Ziglar [tweet this]

Truth be told. Money is as essential to life as water and air. The sooner children start to understand the value of money, the better prepared they become to deal with life and make it happen for themselves when time is right for them.

2. Money Is Just A Powerful Resource

There are mind viruses all around us limiting our abilities, our thinking and attacking our self-esteem from all directions. Those movies, stories and general negativity concerning money are still freely roaming around in the society.

As parents, it is our responsibility to counterprogram our kids to realize that money is just a tool. It is a powerful tool that can be good or bad depending on how we choose to use it. We need to educate our children that money doesn’t make you good or bad– it simply reveals who you really are.

3. Money Can Bring Happiness

Whoever said money can't buy happiness simply didn't know where to go shopping. ~Joan Collins [tweet this]

It’s okay to teach our kids that money is not the only thing needed for happiness. Good health, healthy relationships and many other intangible things contribute to the mental peace and happiness in life.

However, it is equally important to teach our kids that lack of money definitely brings frustration and misery. Life challenges such as health issues become easier to deal with when there is plenty of money in the bank account. Research has shown that families with less financial stress have less relationship issues.

Therefore, I think our children need to know that money is not just essential tool for life, it can bring many blessings that can contribute to our happiness.

4. Money Is Abundantly Available

Traditionally the school of thought that teaches money is evil believes in a world of scarcity. People of this mentality fundamentally believe that there is only a limited supply and therefore you will get yours by only getting it before others get. This wrong thinking is the reason for dishonesty, greed and the general negativity surrounding money.

But the truth is, we live in a world of abundance. There is no scarcity of money or the opportunities in the world. Those who fundamentally believe in that principle, are making fortunes because they get their share, by helping others achieve their dreams and goals. The generous are doing incredibly well.

Therefore, I will teach my children the value of hard work, generosity and faith, knowing that we live in an abundant universe and only we limit how high we can go.

5. Dream Big – You Can Be Wealthy

Whatever the mind of man can conceive and believe, it can achieve.  ~Napoleon Hill [tweet this]

We must take personal responsibility for creating wealth in our lives. I like to educate my children that our financial situation is not determined by external factors such as government or the economy.  These things may influence it, but if we have a success mindset, ultimately we control our destiny by the choices we make in response to these situations.

We've got to educate our children to believe in the beauty of their dreams, to have faith in their ability to turn those dreams into reality. It is a truth and they better know it.

Questions: Do you believe that our children deserve to learn about money the right way from early on? How do you plan to ensure that our children have a better self-image and a positive and success oriented mindset? Please share your thoughts in the comments now?

Kumar Gauraw

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Kumar Gauraw is a Personal Branding & Social Media strategist helping entrepreneurs and skilled professionals achieve personal and professional success by developing leadership and leveraging the power of the Internet, Blogging and Social Media.

23 Awesome Thoughts So Far, Add Yours Now...

  1. A mind boggling post!!

    Long back when i was child i too had
    dreams of having Bunglaw, Private plane etc … But gradually as i grew
    those dreams started to vanish like fog vanishes by sunrise. But the
                Absolutely NO! As we grew up we started
    taking all the negative from our surroundings leading to shattering of
    our dreams! The dream of having Bunglaw and Private Plane shattered.

    now i have recollected myself. I keep myself engaged in engulfing
    Positive from around. And Bhaiya you have played the role of catalyst in
    that. Two days back i bought ” Rich Dad Poor Dad” . And i wished i
    should have studied the book when it was published. But its never late.

    i know what money can do. Of course it cant buy us what emotion can do.
    But where it plays prominent role emotion scarcely do. Both are
    different entities. But no doubt its the part and parcel of a happy

    • Thank you for the enthusiasm, Ankit. Here is a quote for you:

      “A man is not old until regrets take the place of dreams.” ~John Barrymore

      Dream Big! Nothing happens until somebody has a dream!

  2. I remember watching Hindi movies in childhood with the theme where the rich bad guys would treat poor people very badly. The general impression of rich people growing up was not very positive even though there were rich people who we respected for the good things they did with their money.

    But thanks to the mentorship we received after taking a dive into the business world where we experienced  the potential of creating wealth for the first time. It opened our minds so we can see things from the right perspective.

    Life is definitely a blessing and money is just a resource. How we use that money depends on our own personal value system. Our children deserve to learn the truth and we must take responsibility to educate them with the right information from the right sources.

  3. Awesome blog Kumar!!

    When I was a kid, I always wanted to have the best of everything.   Money was always a challenge for my parents,   though they never mentioned it, but I could see them trying their best to give us all we wanted.

    Never had a real dream as a child…never ever thought that way.  But I always knew that money, if used wisely, can make a difference in your life.   Nothing is good or bad, its how you perceive things, is important.  

    Truth is that lack of money brings in frustration, not only at work, but also affects your family life…leads to unhealthy relationship with the spouse and kids.    I fully agree with you Kumar, that kids do need to know that though money does not give you everything in life, but its a tool that if used wisely, can lead you to achieve whatever you want.

    • Great thoughts, Meher. Money by itself is not good or bad. It always depends on our intention behind using it. You are so right.

  4. This is a great article! It is so important to explain to your children early on about money.

    •  Thank you Karen. Appreciate you visiting and taking time to drop your feedback.

  5. Sudhir Goel

    Very good article. It is absolutely necessary to understand the importance of money so as to earn and hold it.

  6. Great article! thanks a lot for sharing this useful info with us.

  7. Great thoughts to teach ourselves as well 😉

    A popular Indian entrepreneur once said, “the importance of money in life should be equal to the importance of petrol in your car”

    Have a great day 🙂

  8. Don

    Yes I can’t reinforce more the need for teaching kids about money. So many schools don’t teach them how to handle their money and I think a lot of parents don’t spend the time necessary to cover this.

  9. Yes I can’t reinforce more the need for teaching kids about money. So many schools don’t teach them how to handle their money and I think a lot of parents don’t spend the time necessary to cover this.

  10. Its very useful for child to know how and why to save money..

  11. Hello,
    After reading your article, I must say this very good and attractive. But i some little bit thoughts. I think it is not bad to tell about the money and how it is difficult to earn. Its up to us that in what manner we teach children. If we do not take serious about money talking woth children then may be they use wrong means to get money. it depends to child to child. Every person ash differ thinking about anything. But your article is also add some great points.

  12. i am also a kid and my mother don’t give me money and my father always give me money which time i to my father and said papa please give me 5$ so without any question he gives me 5$ and that time i really feel good thank you so much for sharing this lovely article.

  13. Money is powerful, it brings happiness and yes it is everything

  14. Thanks for the informative article. Yes, it is important to teach the value of money to kids from the very beginning. Loved reading the article.

  15. Money Money And More Money. I think its the Money is most Powerfull, but not as much my Love to my family and ma Country.

  16. Very nice blog post Kumar, Your post realized me money is not everything 🙂

  17. The way I see it, as we grow up we tend to see a clearer view on which dreams are more closely to becoming realities and which dreams we really want to choose to chase. We may tend to lose some of our dreams, but on the way to maturity we also tend to build some dreams along.

    I really love the quote you gave ““A man is not old until regrets take the place of dreams.”, and I really appreciate this post.

    Teaching our kids to be smart with money will lead them to become responsible individuals – not just monetarily – but out of anything they value.

  18. Very good article about the money It is absolutely necessary to understand the importance of money so as to earn and hold it. and now a days its very important to explain to your children early on about money. i read one books it’s also good book to read about the money “Rich Dad , Poor Dad” it’s also one of the best books which i have read bout the money.
    Thanks for sharing nice articles. Keep writing.

Please Note: My goal is to host interesting conversations with caring, honest, and respectful people. Therefore, I reserve the right to delete comments that are snarky, offensive, or off-topic.