I grew up in a family where money is a taboo subject and financial education is never taught. I actually learned about such important concepts as personal finance and financial freedom through self-study. My mother, who was in-charge of budgeting in our one-income household when I was little, wasn’t really a good example when it came to managing our limited financial resources.
Back then, we were living from paycheck to paycheck and we were acquiring liabilities instead of assets. While my parents certainly did their best to provide for our needs, the idea of financial freedom was non-existent to them. Or maybe they knew about it, but it was just not among their top priorities.
The husband’s family is quite the same as mine. Theirs is a two-income household (until present time) that prefers saving instead of investing. They also like acquiring stuff that lose value over time. But I have to give them credit for investing in a condo unit a few years ago that is now self-sustaining (it pays its own mortgage through its rent income).
Did you know that real estate is the primary investment of legendary business icons Robert Kiyosaki and Donald Trump? That’s what has made them millionaire and billionaire, respectively. I read it from their “Why We Want You to be Rich” book. But I digress.
Now that I’ve become more serious than ever in achieving financial freedom, I knew I have to teach financial literacy at home. My husband and our two families (his side and mine) should learn how money works and how we could create wealth using it. I thought the following are good steps to take in this direction:
1. Encourage each family member to eliminate their debts.
2. Encourage them to save money, and regularly for that matter. Let’s call this their “emergency fund.”
3. Teach them about the concepts of investing, passive income, and income streams.
4. Encourage them to get life and health insurance as soon as possible.
5. Teach them about living within, or even below, their means. (Expanding their means can follow in the future, if and when they are capable of it.)
6. Introduce them gradually to the idea of simple but smart living.
7. Share with them articles and books on personal finance.
8. Help open their eyes to all these financial realities.
9. Pray that they realize the financial mistakes they continue to do while it is not too late.
10. Assist them in whatever way if and when they start their journey to financial freedom.
I normally give my financial preach whenever I chat with them or we watch TV together. I try not to sound authoritative or judgmental. I try to give financial advice in a friendly manner. It’s still their choice if they wanna change their bad financial habits or not. I’m just here to teach and guide them. If they eventually learn basic money skills, then my efforts and good intentions won’t be put to waste.
I also have to admit that I’m still a work in progress. I still commit financial mistakes every now and then. And there’s still so much to learn in my quest for financial freedom. But as they say, learning is sharing so as much as possible, I wanna share with them what I learn from my self-study in the hope that we could all benefit from it.
Is financial education taught at your home? In what way and how do you react to it? 🙂