We’ve all been concentrating on how we can impart money lessons to our kids. But have you ever wondered if there are certain financial lessons that we can get from children?
In a world that believes in the concept that kids will always be dependent on adults, this seems like a difficult concept to follow. Ou pride as adults will make us unwilling to get lessons from our kids. After all, it is our jobs to teach them – not the other way around.
However, you need to realize that as adults, we also make mistakes. We get to stumble and fall and that is an indication that we also need to get some lessons of our own. In most cases, we turn to those whom we think are greater than us. But the truth is, there are certain concepts, especially when it comes to financial lessons, that requires us to take a step back. It is not always true that we should always learn from those whom we think are intellectually superior than us. There are some cases wherein looking at thing through the perspective of a child is the best way to learn important concepts about life.
How adults and kids look at finances differently
We all know that adults and children think differently from each other. According to a study published on Eurekalert.org, the difference between an adult and a child’s perspective is based on how they are able to process information that their senses take in.
Apparently, a child is only able to process sensory information separately. As they grow older, they are able to combine senses to make more accurate perceptions about their surroundings – just like how adults do it.
For instance, while standing in a busy street, a kid would only perceive that the place is noisy. But an adult is able to process that the street is noisy because of the blaring horns from cars and the large number of people present. In the same way, a kid will perceive that a dollar bill can be used to buy something but an adult will think about what they can buy from that money – and things like where that money came from, etc.
While the accuracy that adults have when it comes to processing information is ideal, it also tends to be complicated. It may not be the best way for us to get out of certain tight spots – especially when it comes to our finances. This is why there are certain financial lessons that we may want to get from children. Their simple point of view can oftentimes be what we need to get out of tight financial spots.
5 lessons about money you can take from kids
Here are 5 lessons that you may want to learn from the little ones.
- The product is more important than the brand. When kids want a toy, they will not care where you will get it. All they care about is the toy. If you get it from a yard sale or Toys R Us, it does not matter as long as they will get the toy. The same should be your perspective in buying stuff. As long as you can supply the requirement, the brand should not matter at all. Kids will enjoy any toy – period. It is more about the experience and not where the toy came from.
- Saving should be fun. You cannot make a child do something that they cannot do. That is why we usually try to make saving fun for them. Well that is something that we need to implement in our lives too. An article published on CBS19.tv mentioned that 68% of Americans admit that they are not saving even if they have extra after all their expenses. They tend to spend it too. It seems that saving is hard because we lack the incentive to do so. Attach rewards to your saving goals so you can be more motivated to reach them.
- Having less of something you really want is still great. Americans have a reputation of being excessive spenders. When we want something, we want to have it in abundance. Excessive is never a good thing and this is one of the most important financial lessons that you need to learn. Notice how a child will not mind if they wear their favorite shirt or dress over and over again? They do not mind having less as long as it is something that they want. They do not need two shirts because one is enough. That is a concept that you need to adapt – less is sometimes more rewarding.
- Money is just a tool. Kids do not obsess about money the way adults do. They are more concerned about how it will help them make the purchases that they need. They also understand that it can run out but that is okay. They can get more of it. We need to stop stressing about the lack of money and instead just focus on making it fit our needs. If is does not fit, do something to make it fit – cut back or earn more. It is as simple as that.
- Starting small is not so bad. When kids are saving for something, they do not obsess that they only put aside a dollar or a few cents each day. They concentrate on the amount that they want to save up so they can buy the toy that they have always wanted to buy. They know that if they keep at it, they will eventually save enough. This is another one of those financial lessons that we need to learn – whether it is regarding saving or paying off debt. WashingtonPost.com revealed that some people are discouraged by saving because they can only put aside a small amount. This should be a mentality that you should try to change. It does not matter the amount that you can put aside. A small savings can grow over time.
4 important financial concepts that will make you rich
All of these financial lessons are meant to help us guarantee financial success. We do not want to be materialistic but this is what our consumerist society expects of us. Fortunately, there are certain concepts that you can implement in your financial life that will guarantee your success.
- Budgeting. When you want to be successful, you should be able to control your finances. This is one of the important requirements if you really want to improve your financial situation. What you want to happen is to know how much you are earning each month and where you want it all to go. That way, you can control where the money will go so you can ensure that priority expenses are always met.
- Smart spending. Another concept that is important in accumulating wealth is smart spending. You need to learn when to say yes or no to the purchases that you want to make. Even if you can afford, it does not always mean that you should buy something. Sometimes, if it is not needed, you have to opt to save instead of spending.
- Saving. The third of the financial lessons that you should implement is to save. While it is important to finance what you need in the present, you need to save for the future too. This is how you can avoid financial problems that involve debt or the lack of retirement funds.
- Investing. Lastly, you want to be able to invest what extra money you have put aside. This is actually one of the two factors that will help you accumulate wealth fast. Make your money work for you by investing it.