TEMPLE, Texas — Some parents are very good about teaching finances to their children. But it can be a really hard thing, or maybe even something that never gets addressed if you do not feel comfortable teaching it.
So when should parents start teaching kids about the life lessons of money? Financial advisor Rolandus Johnson has an 11-year-old an 8-year-old and a 6-year-old, so he is the right man to ask.
From checking accounts, to taxes, to investing, there is nothing quite like teaching kids the honest, hard truth of money as soon as possible.
"We started them early, we teach them about taxes. My kids they have chores and so then they get paid for those chores, and I take what we call the 'Daddy Tax.' And so anytime they do something or they get something I take a little bit off of the top. So they won't get so frustrated later on when they are working and money is not coming to them like they think it is going to come to them."
We need to embrace the times that we are living in, and for those of you whose children speak the language of cell phone, Johnson said be sure to take advantage of that.
"There's plenty of.... With the app and the technology right now, man. There's so many apps out there where families can have family banking to where the parents control the banking. And the kids get their own debit card so they can control how to spend, showing them how to save."
Johnson said it's also important to set goals for children. It teaches important life lessons, patience and the accomplishment of getting something that you really want.
"My kids want the new PlayStation 5 so they have a savings goal, every time you get money you put 'X' amount of dollars towards that."
And just like Johnson's children, soon your kids will start to think differently and will have real perspective on things they see and do, just like his example.
"My 11 year old watched ‘Lion King’ and he said 'Dad, did Mustafa have a life insurance policy?' And I was like, 'I’m not sure!' But we do those things so that we can spot it and understand it and as they get older the world of money becomes easier and more natural to them. My advice is get it to them as early as possible. The earlier the better because when they get older this world of money will eat you up if you are not prepared for it."
According to Forbes by age seven you should be giving your children simple tasks to accomplish with money.