Talking to your kids about money

If you can help your kids have healthy attitudes towards money, you will have given them a special gift. Kids today normally learn very little about money management in school.

I was recently explaining to my children that when you take out a mortgage, you pay mostly interest for many years. I figured out what I had spent on interest on our house, and I nearly puked. Seriously, though I deal with monetary figures every day in my work, I had not grasped how big that number was.

The Bible says that the borrower is the slave of the lender, and boy right now I believe it!

If you belong to a credit union, they will sometimes have morning or afternoon classes on money management. If possible, you should have your children take advantage of them. Even so, your instruction on the topic over the course of several years will have as great an impact, probably greater. Tell them about your own experiences, especially your mistakes. Help them learn how to make financial decisions. Have them work out scenarios on paper (buying house A for X and borrowing for 30 years vs. house B for Y for 15 years).

They’ll thank you for it later, I promise you.

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