Passing down Knowldge about Traditional Family Finances
I watched a video of a very wealthy man in my country who spoke against the way new-generation youths tend to spend their money, and how this pattern of spending is different from how they used to use money those days. He highlighted his assets and mentioned how they were more concerned with saving, investment, and building generational wealth unlike today, when children just want to make and enjoy thier own money.
Normally, it is expected that children would inherit physical traits from their parents, relatives, and grandparents, but beyond physical traits, other character types are also inherited like self-discipline passion for sports, and artistic behavior. Beliefs about money can also be passed down from one generation to the other, that is a strong reason why it is important to have positive traditional financial beliefs that will help sustain the family.
Image source
Incorporating traditional financial value is important for the attainment of financial stability and security. Modern-day financial strategies have to do with spending more and getting into more debt since you are sure of paying them back. However, traditional family values have to do with, living gently within your means, prioritizing saving over spending, staying away from debt, and encouraging investment for future purposes.
Incorporating traditional family values is important for these reasons;
It helps families stay grounded and connected to their heritage.
It creates the promotion of responsible financial behavior, through the pattern of emphasizing saving, budgeting, and staying away from every form of unnecessary debt.
Traditional values help to instill a sense of discipline and self-restraint when it comes to matters of finances.
Individuals and families become more mindful of their spending, and they can make a financial decision that affects their future.
Cultivating the habit of saving for a rainy day is a traditional value that has been able to stand the test of time, since we are living in uncertain periods, it is very important to have a financial cushion to always fall back on in case when emergencies arise.
Image source
The traditional family financial pattern encourages saving, it is made a habit through the act of setting aside a particular percentage of your income monthly, this helps to build a savings pool for future opportunities.
It is not easy to decide to live within one's means, but it is a fundamental financial principle that helps with one's finances. When we spend beyond our capacity, it leads to debt and a continuous circle of financial instability, sticking to a budget and avoiding impulse buying can help to keep the finances of families in check.
When you are advised to live frugally, it does not mean you ought to sacrifice every iota of happiness, I mean what is the essence of making money if you are not able to purchase some of the things that lead to happiness, you just need to prioritize your expenses and make very wise choices about spending.
As a means of knowledge passed down through generations there should be a encouragement of investment that aligns with financial goals and a reduced risk level.
Making investments in education, retirement, and real-estate programs are traditional investment opportunities that have stood the test of time and they could pay off in the long run.
Teach children about finances from a young age.
To build a strong foundation for financial management, then it is important to begin teaching your kids from a young age and let them see examples through the way you handle your finances.
Build them a savings account, and allocate an allowance opportunity for them as they learn to manage their own money, this will help groom financial skills they can use all through their lives.
Posted Using InLeo Alpha