Welcome to the 2nd Annual Financial Literacy Awareness Carnival. These year I am joined by some amazing bloggers who are going to share their Money A-has to help you on your journey to financial literacy. It’s my hope that their stories will inspire you to tackle your debt, talk to your kids about money, set authentic goals and most importantly—believe you deserve and can achieve financial freedom.
My father started talking to me about money when I turned 13, and it wasn’t until years later that I realized what he did was highly unusual. Money is often a taboo topic in homes, forcing kids to learn by trial and error when they leave home. Unfortunately, many struggle to make good money decisions and create unnecessary debt because they don’t realize the risk debt carries. I feel blessed that my father helped me develop a positive and healthy relationship with money. He taught me that money was a gift that could bring joy into my life and others when used properly. He showed me how to set goals and use those goals to guide my decisions, rather than letting my emotions control me.
My father’s gift of financial literacy led me to become a Certified Financial Planner (CFP®), and it’s been my honor to help individuals, families and businesses feel more financially confident for the past 23 years. During this time, I began noticing a common thread among clients. Their money hang-ups weren’t acquired as adults, but something they inherited from their parents in most circumstances.
It was then I realized how early kids begin observing their parents, including how they handle their money. How they use it. How they speak about it. How they think about it. Kids began associating money with fear or anger or guilt when they saw their parents argue over money or complain about not having enough or someone having too much. Eventually they grew up to repeat their parents’ money mistakes in front of their own children who then begin to mimic their money habits and beliefs. This cycle needs to stop.
As a parent, there are so many lessons you need to teach your kids. And sadly, money isn’t on the list for most parents. It should be. Everyone single person handles money. Their ability to make good decisions with their money is critical to their financial well-being. It doesn’t matter how much money you make, if you don’t know how to use your money wisely, you may still struggle to create the life you truly want.
With the lightbulb now clicked on, I was determined to break this cycle. I vowed that I would talk to my future kids about money, just as my father did with me. But I would start earlier, when they were toddlers and free of any bad money habits or beliefs, rather than wait until they were teenagers. Money would never be a taboo topic in our home, and my husband and I would be good financial role models whose words and actions were in alignment.
I kept my promise and today, at ages 8 and 10, my daughters are more financially literate than many adults. They are financially confident kids who will grow into financially confident adults. And it started with me, just as it starts with you. I hope you will give yourself the gift of financial literacy and pass that gift to your children by actively talking to them about money, so they can create the life they want for themselves.
Thank you to all the participating bloggers for sharing your money a-has. Your stories and blogs are helping change how we look at financial literacy. Together we are making a difference. I read these blogs every day and highly recommend them. Be sure to subscribe to their feeds and follow them on your favorite social media channels. You want them in your community. It’s my hope that our money a-has will inspire some of your own. Grab a coffee or your beverage of choice and happy reading!
Adventures in Frugal: Financial Literacy Taught Me the True Meaning of Freedom
Are Ya Gonna Eat That: My Biggest A-ha Moment
Breadwinning Mama: Baby Smiles and My Financial A-ha Moment
Broke Millennial: I Didn’t Have a Savings Account
Budget and The Beach: Progress, Not Perfection
Budgeting for More: Money, Stuff and The Art of Being Happy
Canadian Budget Binder: The Money Box Inspired My Passion For Finance
Cash Cow Couple: The Importance of Sacrifice
Cents and Sensibility: My Biggest A-ha Moment: Live a Good Life
Color Me Frugal: Compound Interest: Einstein’s Friend (And YOURS!)
DebtBlag: Financial Literacy Gave Me Hope
Debt Roundup: My Biggest A-ha! Moment
Disease Called Debt: My Epic A-ha Moment About Money
Eat Laugh Purr: Shine a Light On Your Money Fears
Enemy of Debt: Communication and Teamwork Are Vital to Success
Eyes on the Dollar: My Financial A-ha Moment
Femme Frugality: Growing Slowly
Financially Blonde: Salary Hostage
Frugal Rules: Where It All Began
Girl Meets Debt: My Debt A-ha Moment
Impersonal Finance: My First Money A-Ha
Living Rich Cheaply: My Journey to Financial Literacy
Luke 1428: How Shopping for Shoes Changed My Financial Life
Modest Money: Realizing the Importance of Side Income
Money Rebound: Why Give the Gift of Financial Literacy?
Monster Piggy Bank: Changing Your Views on Money and Becoming Financially Literate
One Income Life: Becoming Debt-Free
Reach Financial Independence: The Importance of Student Financial Literacy
See Debt Run: Our A-ha Moment
Square Pennies: Is Grit The Most Important Thing for Success
Stacking Benjamins: My Biggest Money “A-Ha”: Discovering the #1 Key to Saving Big Money
The Broke and Beautiful Life: Formative Money Moments
The Frugal Farmer: A-Ha Money Moment
The Random Path: Nobody Puts Baby in a Corner
Thrifty Dad: When I Realized that My Financial Future Was in My Hands
Young Adult Money: When I Realized Ownership and Passive Income are Key to Wealth
Photo courtesy of www.FreeDigitalPhotos.net.
The Heavy Purse Store is now open! My new downloadable Money Club Workbooks are now on sale. Each workbook provides five targeted lessons to help you raise Financially Confident Kids. Please check them out in The Heavy Purse Store.
SHANNON RYAN, CFP®
Have a great day.
Mr.CBB
I think its fascinating how some kids pick up their parent's habits and others do a complete 180 degree turn from what they see. My dad was very loose and free with money and I didn't like how that made me feel, so at 8 or 9 I started saving and I've been very conservative with money ever since.
And I love your post. It really reminded me that I need to start incorporating my daughter in conversations about money. She's only 6, so she doesn't quite grasp the concept of money. I try to avoid phrases like "we can't afford it" or "it's too expensive." I do try to explain that if she wants this, it costs this and simple concepts like that. Thanks for the reminder. I want to instill the understanding early on.