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Let’s face it, turning 20 isn’t always sunshine and rainbows. Suddenly, you’re bombarded with “adulting” responsibilities, and if you throw a baby into the mix, well, things get real fast! My partner and I were in that exact boat when we had our first child in 2017. Fresh out of our teens, neither of us had any real financial literacy education from our families. Moving out, let alone raising a child, felt like navigating a financial jungle blindfolded.
We started with good intentions, having conversations and trying to be mindful of our spending. But honestly, it wasn’t enough. We found ourselves accumulating small debts and lacked a clear strategy for spending, saving, and investing. That initial struggle—the financial anxiety and confusion—is exactly why I’m now so passionate about giving my own children a better financial head start.
The Financial Education I Wish I’d Had at 14
Now, as a 28-year-old, I have a long list of “I wish I learned this when I was a kid.” Imagine the head start I could have had if I understood these concepts when I got my first job at 14, or even before! These are the foundational principles I’m now committed to teaching my children.
1. The Power of Delayed Gratification
This is arguably the most crucial lesson. I wish I understood that sacrificing a small, immediate reward (like that new gadget or impulse buy) for a greater, more valuable reward in the future (like a down payment on a house or financial independence) is a superpower. It’s the difference between living paycheck-to-paycheck and building wealth. Teaching children to wait and save for something they truly want builds this crucial muscle.
2. Implementing a Money Management System
We all need a system, not just a vague desire to “save more.” A good system is about giving every dollar a job. This is not about being rich; it’s about being organized.
- How to Implement One: The simplest approach is the bucket or jar system (physical or digital). For every paycheck, you immediately allocate funds into separate “buckets” like Spending, Saving, Giving, and Investing. This makes your money intentional, not accidental.
3. Setting SMART Financial Goals
Wishes are not goals. Goals need structure. I wish I’d learned to set SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound—from the start.
- Short-Term Goals (6-12 months): For a young person, this might be saving for a new bike or a gaming console. For an adult, it’s building an emergency fund (three to six months of living expenses).
- Long-Term Goals (5+ years): This is where you focus on life-changing goals, like saving for a university education, a house deposit, or planning for retirement.
4. Introducing Investing and Passive Income
The magic of compounding interest is something every child should learn about. Investing doesn’t have to be complicated—it’s simply putting your money to work so it can earn more money for you.
- Investing: Start small and simply. Even learning about low-cost index funds can unlock the secret to long-term wealth creation.
- Passive Income: I wish I had understood that a job is one way to make money, but it’s not the only way. Learning about ways to create income streams that don’t require constant active work—like rental properties, dividend-paying stocks, or digital products—is key to true financial freedom.
The Turning Point: Finding a System That Works
In 2017, everything changed when I stumbled upon the book “The Barefoot Investor” by Scott Pape. It was a revelation! This book broke down financial literacy into simple steps, making it feel achievable for the first time. It gave us the system we desperately needed. We started having more focused discussions, and slowly, a plan began to take shape.
Expanding My Knowledge
Fast forward to 2023, and I’m still on this financial literacy journey. Podcasts like “Money Money Money” and : “She’s on the Money” (this is not an affiliate link) have been instrumental in broadening my understanding, especially when it comes to automating finances. Let me tell you, automating your expenses, savings, and investments is a game-changer! It takes the emotion and effort out of managing money.
Since reading the Barefoot investor I have continue to grow and development my financial literacy skills by reading more. Some of the books are below:
Breaking the Cycle: Financial Education for My Kids
It’s no secret that comprehensive financial literacy is rarely taught in schools, and many parents haven’t had the tools to teach it either. I don’t want my children to experience the same initial struggles my partner and I did. That’s why I’m committed to providing them with a strong financial foundation from a young age. We use practical tools—like giving them control over their allowance and using clear, visual jars for saving, spending, and giving—to make these abstract concepts real.
The truth is, financial literacy is a lifelong learning process. Even at 28, I’m constantly striving to learn more and refine our family’s financial strategies. By continuing my own financial education journey, I can better equip myself to teach my children the valuable skills they need to navigate the financial world with confidence.
Are You Ready to Start Your Financial Journey?
If you’re feeling lost and overwhelmed like I once did, check out “The Barefoot Investor” (this is an affiliate link and I may or may not receive a commission pending if a purchase occurs). It’s a fantastic resource for anyone looking to take control of their finances.
Remember, it’s never too late to become financially empowered—for yourself and for the next generation!
What’s the one financial lesson you wish you learned earlier in life? Share your thoughts in the comments!
