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Teaching Financial Literacy to Your Kids


There is an interesting article on the New York times that talks about the struggles of the author to teach his kids about financial literacy.

"Watch as we don't buy, not as we do" is a real life example of how kids mimic what their parents do and how values are imparted when they observe how their role models spend.

Last week, I just went back to my parents' place for dinner and while washing up, I noticed that my dad's shaver is still the same one that he has been using for at least a decade.

It got me thinking about how I will think hard about every purchase I buy. Whether I'd need it, and put it off so that I can see for myself if I truly want/need it. I think I have to thank my dad for this.

Frugality is transmitted like polite/rude behaviour. I still have work clothes that I buy 10 years ago and still wear it. I can afford a completely whole new wardrobe of clothes. But I don't see the need, nor do I want it.

Living within one's means and choosing not to keep up with the rich fellows flaunting their BMWs, expensive watches, tailored clothes is one step towards financial freedom.

The example you set for your kids for frugality is also an added bonus.

Just don't overdo it and make your kids a leech who takes advantage of others to save money.

I'd remember to get my dad a shaver soon.

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John YS said...
November 3, 2010 at 9:08 PM  

it really depends on what kind of lifestyle you want.

Rich, famous, huge spender, attention grabbing, eg Donald Trump

Rich, famous, humble, live frugally, enjoy private life, eg Warren Buffett

Rich, unknown to public, spend most of the time with family and helping close friends, eg an owner of local various industrial developments

most impt, maintain a healthy level of consumer debt, read more blogs that impart financial education, like this one. =)

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