Often times I wouldn’t buy for myself what my parents thought was needed. Items my parents thought were essential for me to own were purchased by them.
Although sock drawers might be able to protect wealth from physical thieves, inflation is the dastardly villain who will raid it. As a child, I did not know of such economic forces let alone that they had an influence on my humble stash.
One reason that many people buy things that they could have done without is “functional fixedness.” Teach children to prevent unnecessary purchases by making efforts to help them see other possible uses of owned objects.
My dad taught me the opportunity cost of a Barbie airplane, or what alternative opportunities I would be giving up when I bought it, like buying twelve Barbies.
For cheap or limited edition items, desire needs to undergo a trial other than the test of time and the Wait a Week principle should be modified.
If my parents had been in control of the purse strings, I would not have learned the value of money. To a child, “My Money” is valuable where “Your Money” is worthless.
David Marotta and Megan Marotta were featured on October 11, 2011 on radio 1070 WINA’s Schilling Show discussing the importance of teaching your children about money and giving them a “rich” mindset.
With money in my pocket and impulse in my veins, I used to cherish our weekly trips to Toys ‘R’ Us. However, it was on the Barbie aisle under my parents’ guidance that I became a money-savvy kid with the millionaire mindset.
When it comes to teaching financial lessons, setting a good parental example is important, but actually giving the child some experience making wise financial decision is essential.
David John Marotta may just be an economic columnist or financial planner to you, but to me he is an amazing father and best friend. I’d like to take this opportunity to show you why he was and is so awesome.
“Small changes over a long period of time make all the difference.” Learn how to teach financial wisdom to your children with Megan Marotta’s series, “Rich Dad, Rich Daughter.”