Raising Financially Independent Children

September 8, 2021 melissa Real Estate Comments Off on Raising Financially Independent Children

Raising Financially Independent Children

We all want our children to be successful when they grow up. Whatever our notions of success are, we all want to see our kids thrive and live comfortable lives as parents. To do that, we do our best to put them to school and provide them the educational foundation they need for their future. But is that enough?

Statistics show that 8 out of 10 Americans have some form of consumer debt. Sadly, having debts is like a way of life for many because that’s what they’ve known growing up. Parents try to enroll their kids in all sorts of skill-enhancing classes and training, yet forget to equip their kids with one important lesson that will set them up for success – HOW TO MANAGE MONEY. If you’re a parent, this is for you. It’s not too late!

The points below are from the thirteenth episode of the Real Estate JAM, where Doug Nordman talks about the importance of tracking your spending, saving, and investing. He also shares how parents can teach their kids how to manage money and plan for the future. If you want to learn more about achieving financial independence for you and your family, you can listen to it on YouTube, Spotify, or Apple Podcasts.


 

Teach by Example

It’s hard to teach children how to be financially responsible in today’s consumer-driven culture, where delayed gratification appears to be an unpopular idea. But it’s doable. Instilling the value of money, spending responsibly, and the importance of saving don’t happen overnight. You have to nurture it in their young minds, not just with words but with actions. How? You start with yourself. As the saying goes, “your children will follow your example, not your advice.”

Military retirement expert Doug Nordman shares how they raised their daughter Carol in a simple, frugal lifestyle. “As we go shopping for groceries, or as we go shopping for clothes, or as we go shopping for toys, she sees the way that we live a frugal life. You’re shopping at the commissary, or you’re buying food with coupons, and to a young kid, that’s interesting. That’s what grownups do. And they want to imitate that.”

Look for opportunities to model how you make financial decisions in your daily activities. Provide real examples for your children to imitate. Let them see and observe how you do your budget, pay the bills, or shop at the grocery store. Make it a fun learning experience that they will surely remember!

 

Make Room For Mistakes

You also have to trust your kid with managing their own money even at a young age. There’s no sense in teaching them such things without letting them try it first hand. And when they make mistakes, you must let them. Trust that, with your guidance, they will someday learn how to properly manage their own money. Mistakes are great teachers, and making mistakes while they’re young is better and cheaper than letting them grow up without a clue on how to budget their own money, take care of their bills, or stay away from debt.

As Doug emphasizes, “It’s expensive. There’s wastage; there’s going to be a lot of mistakes. But the mistakes that they’ll make at a younger age, as they’re growing up before they leave the house, are far cheaper than ignorance.”

 

Want to learn more from Doug? Listen to the full episode on YouTube, Spotify, or Apple Podcasts.

 

Outline of the Episode:

  • [02:16] What fueled Doug’s passion for financial independence?
  • [04:43] The many things you can learn at retirement. It’s not at all boring!
  • [07:05] Doug’s journey from reluctant landlord to financial independence coach
  • [09:15] The importance of being strategic and deliberate in picking your properties
  • [12:52] Why you should start tracking your spending now
  • [14:18] What do you do with your savings? Investing in real estate or the stock market?
  • [15:16] How to reach financial independence. Let’s do the math.
  • [16:32] Having control of your finances and future. You can have a choice!
  • [20:15] Frugality vs. deprivation
  • [22:20] Teaching your kids how to manage money
  • [26:50] How Doug started writing a book about financial independence with her daughter Carol
  • [30:29] Doug’s recommended financial independence resources

 

Resources Mentioned in the Episode:

 

Connect with JD, Annabel, and Melissa!