Today’s Practical Planning Tip we will conclude our discussion on Money Advice Every Parent Should Give Their Children.
Today’s piece of advice is to teach your kids the importance of NEVER trying to ‘keep up with the Joneses: Settling in a community often comes with certain social pressures to maintain a particular lifestyle. It’s important to teach your children that there will always be someone who has more. There will always be a family in your social circle that appears to have a higher income, nicer house, fancier car, goes on better vacations, and on and on. At all levels of wealth, trying to keep up with others is a futile goal that will only lead to unhappiness and financial hardship. It’s far more important to live within your means, save money every year, invest it prudently, and focus on the things in life that give you true joy, like spending quality time with family and friends.
Perhaps this is a good message to leave folks with as many people go on winter vacation. I know some of folks watching this will go away on vacation when they can’t afford it. To Florida, or Panama, a ski trip, overseas (maybe to Israel), or away to an island somewhere…all because others in their social circle were going on vacation and they felt compelled to try to keep up. In life it’s important to remember that the race is long, and, in the end, it is only against yourself. What other people do is irrelevant to your life…
As I conclude this kids & money series, I’d like to end by saying that focusing on educating your kids on what’s important in life, like these prudent financial principals, will give them a great foundation for the future.