Financial literacy for children is highly important.

Before we go there however, let’s talk about my experience; being in business for myself for the last 20 years, and helping other business owners before that, I have learned that everybody has their own unique relationship with money. I have a theory that this relationship begins to form based on your parent’s relationship with money. Following this, what your experiences are around money when you are young and develops from there – for better or worse.

Because of the nature of what I do, being in about 200 sets of books for all types of business each month, I truly have a bird’s eye view of these unique relationship. I see what works well, and I also see what NOT to do. It is this powerful knowledge that I want to bestow on my children on how to handle money as they get older.

Bad Habits

I have learned of certain bad habits – people who are literally afraid of money and use that as an excuse to be ignorant, or who stick their heads in the sand when it comes to money. They use that as an excuse to be ignorant, and become their own worst enemy. I do not want this to happen to my children.

Talking to Children About Money

I often talk to my children about income, working for a paycheck, incurring and paying bills, and recently debt. I do this in terms that I feel they can understand. Because I talk to my kids about this stuff, they tend to ask all kinds of questions. Whenever we are out shopping or whenever the topic might come up at home, questions come up. I know that some “experts” might disagree with speaking with my kids so openly about money. I strongly feel that if I don’t, that will lend to my children’s fear of money, a topic considered taboo in the home is generally a topic that has fear around it.

In my research to write this article, I came across this blog which I feel encapsulates the same sentiments I have regarding financial literacy in children.

 

– The Spark Team

Adapting Profit First for E-commerce Ventures

Running an e-commerce business is challenging, especially when it comes to managing finances. The Profit First method, created by Mike Michalowicz, offers a unique approach to ensure profitability by prioritizing profit in financial management. While it was originally...

Spark Steps to Get Your Business Ready for the Holiday Rush

As the holiday season approaches, it's time to begin gearing up for the busiest time of the year. This period is not just about increasing sales; it's also about enhancing your brand's presence, building customer loyalty, and ensuring smooth operations during...

Small Business Forecasting Made Easy

Accurate financial forecasting is crucial for small businesses in today's competitive environment. It allows you to anticipate future trends, make data-driven decisions, and achieve long-term success. However, many small business owners find themselves overwhelmed by...

Maximizing Profit Margins: Spark’s Strategies for Businesses

Maximizing profit margins is crucial for long-term success and sustainability. By implementing effective strategies, retail businesses can improve their profitability, streamline operations, and provide better value to customers. Here are key strategies to help you...

Mastering Expense Control: A Profit First Approach to Cost Management 

In the world of business, managing expenses effectively is not just about cutting costs—it's about making strategic decisions that enhance your financial health and sustainability. The Profit First approach, introduced by Mike Michalowicz, offers a transformative way...

Fine-Tuning Your Financial Strategy: Advanced Profit First Techniques

Fine-Tuning Your Financial Strategy: Advanced Profit First Techniques In today's dynamic business environment, managing finances with foresight and agility is more critical than ever. The Profit First methodology, pioneered by Mike Michalowicz, has transformed the way...

How to Find Your First Job as a Bookkeeper or Accountant 

Embarking on a career in bookkeeping or accounting, especially with a niche focus like restaurant accounting, is a journey filled with learning and growth. After honing your skills and maybe even deciding to specialize, the next pivotal step is landing your first job...

The Accountant’s Guide to Finding Your Niche Client Industry 

In a world brimming with competition, standing out is not just an option; it's a necessity. For accountants and financial consultants venturing into the realms of restaurants, caterers, cafes, and all small businesses, carving out a niche is akin to discovering a...

Top 5 Mistakes Most Bookkeepers/Accountants Make (And How to Turn Them Into Wins!)

In the journey of any professional, mistakes are inevitable. They are, in fact, valuable stepping stones to mastery and success. For bookkeepers and accountants, understanding and learning from these mistakes can transform your career. Let’s explore the top five...

3 Common Mistakes Made When Implementing Profit First

Having spent a significant part of my career in the restaurant industry before moving into bookkeeping and consulting, I've witnessed firsthand the transformative impact of the Profit First methodology on businesses. However, as with any system, success lies in its...
Financial Literacy