I just came across a pleasantly earnest essay in Forbes by Michael Kay in which he outlines the top ten lessons parents can, and should, teach their children about money.
I don’t see any reason why this list should apply just to parents and kids. We can all do with a refresher from time to time, so thank you, Mr. Kay – and here goes!
- Money comes with responsibility
- Never spend more than you can afford
- Work from a budget that outlines your income, fixed and discretionary expenses
- Actively save each pay period (pay yourself first!)
- Establish and build an emergency fund of liquid assets
- Never charge more than you can pay off with ease
- Use your wealth to help others, too
- The idea that “he who dies with the most toys wins” is simply not true
- Money is a tool and not an end
- Think about what’s really important to you, and create a plan to get there.
I guess we could call this ‘mindful spending’ or ‘mindful earning’ rather like the ‘mindful eating’ thing. So maybe I’ll tack the list to the fridge!