A child grows up and reflects what they were taught from a young age. So if you don’t want your children to grow up to be an ATM machine that spills out money they don’t actually have, best start teaching them to be as financially responsible as a CFO. Teaching a child the basic rules of Money Discipline and managing their own finances from a young age, will give them the necessary foundation that leads up to adulthood. If you want the youngsters to understand that you stay rich by spending as if you are poor, think like a parent but teach like a CFO. We live in a world where the majority of the population is controlled by money. Every dream your child has will require an abundance of this paper, which they will have to learn how to spend or save.
Because your child only needs basic money management skills, you don’t have to be a CFO to teach them these skills. Make sure your financial knowledge is up to date and lead by example. Know that your child will mostly reflect everything they see and hear from a young age and if you are not financially responsible, the chances of your child developing the CFO mentality of money matters are slim.
Start implementing daily chores for them to do. They will learn from a young age, that although life is fun and games, work that needs to be done must always get done. Of course, the amount of chores should be appropriate to the age of your child.
When they reach teenage years, they might start grumbling that they want the best electronic gadget. Your parental instinct would seriously consider this, because you only want the best for your child. Now it’s time for the CFO inside you to say “if you want it, you’ll have to work for it”. Stick to your convictions and do not cave in, even if they start having a “but i want it“ attack.
A child gains maturity by learning from their mistakes and it is perfectly normal for them to make them along the way. Sometimes this will mean that they waste money, but this is part of their development and you as a parent should support them and show them where they went wrong.
Allow children to buy what they want (within reason) using the money they earned themselves. They will learn that once money is spent, you have to do the work all over again to get it back. This will make them realize that money should be saved or spent wisely when acquired.
Teach them that their goals in life will most likely require money, effort and time. A very effective way of educating your kids to work with money is to give them a weekly amount to spend at the school tuck shop. Make them plan ahead with their finances and not just spend everything in one day.
Your child might have an entrepreneurial side which should be encouraged at all times. This will be the best opportunity to teach the child how to think like a CFO, by managing money and to get creative. After all, creativity is key. Support your child’s ambitions financially (if it’s not a bank draining idea).
Just like a CFO evaluates risks of the company, your child should learn how to anticipate potential unwanted financial losses and risks. They should learn how to approach these situations with confidence. The most important element they can acquire from a young age is knowledge, which they can use for future endeavors.
Growing up, your child will not completely grasp that your bank account is not an endless sequence of numbers. While growing up, slowly advise them of your financial situation and what the future may hold for them in terms of further education. Children must understand, if they want further education, they should study hard and work hard. Slowly introduce them to adulthood and teach them that, in life you will get what you have worked for.
Growing up, children should learn how to think like a CFO, it’s a way of thinking that can open doors and prevent financial disaster. Lead them with the mindset of a CFO but love them like a parent.
