When The Fund Family first started as a blog, we came up with a list of why we wanted a blog. One of the biggest reasons was to have a journal of sorts for our children. We feel a huge responsibility to help teach them about money and how to properly manage it. We both agree that there were great things taught to us by our parents, so we want to pass on that good knowledge, but also add a little bit more from what we’ve learned. Here’s what we want our kids to know about money:
Avoid Debt.
We hope that this will be something that you guys (our kids) will get sick of hearing from us. Avoiding debt also helps teach important lessons about saving and interest. Our hope is to help them not be “normal” as Dave Ramsey would describe and think of debt as a burden, not a ticket into the “good life”.
Save first, Spend Later.
One of the best things we’ve done with our money, is made our saving automatic. Every month, money is deducted from our accounts and added to our “FU” money accounts and our investment accounts. Every month we do this, our money continues to grow. It has helped us not worry about having enough money to save at the end of the month because it forces us to live off of what is left after saving.
Learn How to Budget.
Budgeting is such a simple thing, but is so easy to overlook. It’s amazing to see the difference between the months when we budget and the months we don’t. Making and keeping to your budget will even make spending money the things you want a lot more fun. It takes away the guilt that can sometimes come with purchases because you know you have planned to spend that money.
Invest.
Investing doesn’t have to be complicated. You can learn a few easy techniques and do it all yourself. Doing it yourself will save you lots of money in the long run because you won’t be paying someone else to do it. Just like with saving, always be putting money away before you spend it.
Learn to be Frugal.
There will be times in your lives when you won’t have loads of cash. Being frugal is the best way to make your money last a long time. Even when you are making loads of cash, being frugal is an excellent way to keep that cash around. Your mom and I have been through times where we had to stretch every dollar we had. Luckily both of us are naturally frugal people, but it is something that can be learned and perfected. Best way to practice this is to budget.
Always Be Learning.
There is always going to be new things to learn and keep up with, especially when it comes to financial literacy. Your mom and I love to listen to audiobooks to help us stay motivated and on the right path. Never be complacent.
We hope that this will be something that will be taught in our family by example. Some of the best lessons we have learned in life have been through watching our parents. We will probably make mistakes as we go through our financial paths, but hopefully we can provide you with the best tools to make your own financial path successful.
We love you!
Mom and Dad