Money, if rightly appropriated can do many good things for the family. By unwise use, money becomes a snare and may cause the collapse of many families. The reason so many families have a hard time in financial matters is simply because of poor financial management. The reason so many men become bankrupt is because they seek to gratify the extravagant tastes of their wives and children. How careful should fathers and mothers be to teach sound financial management to their children?
According to financial experts, for parents to get out of the poverty rut, they must learn the following :
1. Live within your means.
Learn to practice economy in all things. Keep expenditures within the limit of your income. If you have extravagant habits, cut them away from your life at once. Habits of economy, industry, and sobriety are blessings to your children, they will grow up to be good stewards of money.
2. Learn to set aside money.
People must learn to diligently set aside money for themselves, so that in the event they are no longer able to work, they may rely on that money to take care of their future. Parents who were unable to set aside money for their old age will now rely on their children to help them get through life. This becomes a vicious cycle that puts a great deal of burden on the children simply because of poor financial management. By being wise with money, parents can live their lives without being a burden to their children.
3. Shun Debt.
Many families are poor because they spend their money as soon as they receive it. Be determined never to be buried in debts. If you are already, deny self at least while you are walled in with debts. Save your centavo, and pay your debts. When you are a free man again, owing no man anything, avoid debt like a smallpox.
4. Be a passive earner.
Being a passive earner means you don't have to work very hard at making your money work. Your money earns without you even moving a finger. Learn to place the money being set aside in a high-yielding instrument such as mutual funds, treasury bills or stocks.
5. Learn to balance the budget.
Learn when to spare and when to spend. Keep accounts. Some neglect this work as non-essential, but this is wrong. All expenses should be accounted. habits of self-indulgence or a want of fact and skill on the part of the wife and mother maybe a constant drain upon your finances.
6. Educate the children about money matters.
Parents are to bring up, educate and train their children in wise money habits. They are to educate their children that there is a need of living in accordance with simple habits in their daily life. The very best legacy which parents can leave their children is to show them knowledge on the true value of money.
7. Share your blessings to the needy.
A truly wealthy person, according to an ancient sage, is one who is able to live comfortably at the end of his lifetime and be able to give away all that he has acquired before he dies. After all, none of it can be taken to the afterlife.
Published by Teresita C. Tayanes on June 29, 2007 04:16 AM
