Building A Financial Foundation For Our Kids

During these recent economic struggles, it has become apparent there is still so much in terms of financial illiteracy. Unfortunately, for many this affects more than just us. It directly affects our entire family. So, what could you have done differently leading up to this situation? Aside from predicting the future, what are some of the habits you could have started and can instill in your kids to prepare for issues like this in the future?

Financial Stability (or lack thereof)

If you have been working to become financially free, you likely know the struggles you have had to overcome to get to where you are at. However, when something like this situation hits, you are likely going to be set back with your hurdles to freedom. In other situations, you just think you are being smart with your money. When disaster strikes, you are not only struggling to figure things out, you are unable to have any basis on what to do next due to lack of effort to learn. This is often very eye-opening, and can be a turning point.

Starting to attack your issues

One of the biggest hurdles I harp on is debt. Having debt can weigh you down in terms of your financial success. It can also create a bigger issue when there is say, a pandemic? It can be hard to deal with it when you are working under normal circumstances, and can be even more so under strenuous circumstances. Once this is over, and things begin to get back to some level of normalcy, it will be that much more important to begin a plan of action.

Passing it on to the next generation

As adults we are all going to go through hardships. However, so many times we shield our kids from them. We want them to think nothing is wrong, or we want them to have everything they want. This is by far one of the worst actions you can take. Especially if they are old enough to really understand what is going on, it is important to tell them. Including your kids in these struggles will help them understand the realities in the world and you can begin to teach them now.