I have a confession to make…  I am addicted to travel.  Not lavish travel.  Simple and affordable travel.  My absolute favorite?  FREE travel.

 

Travel enables me to see worlds outside of my own.  I see different ways of living and doing things.  I feel more connected to other cultures and people.  It stimulates all of my senses.  I have learned that I am happiest when travel can be a part of my life.  And we all know that "When Mama's happy, everyone's happy."

 

Travel is the reason behind my recent blogging break.  I took my mother back to her homeland in England to visit with relatives she has not seen in over 40 years. In doing so, I was able to establish connections with family members that I, otherwise, would never have met.   My brother joined in on the adventure.  The trip was magical in every way.  

 

The airline tickets for my mother and I were purchased with miles.  The few nights not spent with relatives were purchased with points.  These miles and points were accrued through credit card bonuses - not frequent flyer miles.  The credit card game, when played with caution and strategy, can provide many perks without incurring debt.

 

What does all of this have to do with parenting?  For me…everything.

 

My wish for my children is for them to live life with a good balance of work and play without feeling "trapped" by their own finances.  In order for this to happen, they will need to learn about money and credit.

 

They will need to learn that:

Now I realize that life throws us curve balls sometimes. The economy crashes.  Divorce happens.  Businesses struggle.  School loans weigh heavily.  A medical problem can quickly devastate anyone's finances.  As much as we want to protect our children from the difficulties of life, we cannot.  So we do our best to prepare them.  And the preparation starts now.  Here are some tips for helping our children regardless of our current financial situation.

 

1.  Work together to establish a system of chores and corresponding compensation (allowance).  

2.  Have them divide their allowance into separate envelopes (60% savings, 30% spending, 10% charity)

3.  Teach them to shop on a budget and do not allow them to exceed it.

4.  Begin explaining the concept of credit - the pitfalls and opportunities.

5.  Set up checking and/or savings accounts which they are actively involved in managing.

6.  Provide an opportunity for them to take out a small loan from you at 1% interest to teach them the concepts of payments and interest.

8.  Show them the numerous ways in which companies market to them.

 

As a culture, we tend to focus more on our children's academics and activities than on teaching them about money.  What good is brilliance and talent without basic survival skills?