Albert Einstein once said, “The only source of knowledge is experience.” Well, grandparents have a lot of it.
Not only are they often the wisest people in the room—having lived life the longest—but they also have a special relationship with their grandchildren. Nearly three million children live with their grandparents, depending on them for financial advice at a young age.
If you’re a grandparent, you have a unique opportunity to teach your grandchildren about money management. Here are three ways to do it:
#1: Explain Where Money Comes From
Your grandchildren need to know that money doesn’t grow on trees. You can’t just speak it into existence. Teach them the following saying: “The only way you get money is to earn it.”
Be strict with allowances. Keep track of where the money is going. Don’t shower them with undeserved cash as a way to show affection. Whether it’s $5 or $100, your grandchildren shouldn’t take money for granted—or expect to get it by whining.