Sometimes we fail to teach, and share, the truth about money with our children, and other young people we come across. This sets them up for disappointment, failed discipline, and a cycle of generational problems around the topic of money.
We end up creating a false sense of security for young people when it comes to money, which leads to unrealistic and false expectations about their ultimate relationship with money. There are some hard truths about money that we should be teaching young people at a very early age.
In this blog post, I want to share 21 things that every young person should know about money, before they reach the age 21. These are things that many of us were not taught, and had to learn the hard way. But why? Why were we never told these things about money? Perhaps some of us were actually told some of these things, but we didn't listen or pay much attention at the time.
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Here are the 21 tips about money that every young person should know
1. Take 100% responsibility for your own actions. Accountability is power and control and your money is your responsibility, which is a good thing. As long as you realize that your destiny (financial or otherwise) is based on you being accountable and responsible, then you can achieve anything. When you blame others, you hand them the responsibility of your life and your money, and you leave yourself powerless. Success with money is 20% numbers and 80% behavior.
Behave responsibily with your money and you will be rewarded.
2. Self-control and the ability to delay pleasure will help you build wealth. The less you can be addicted to the need for immediate stuff, the less you will do things like compulsively spend, over spend, use credit cards, take on loans, and other things that hurt your wealth. Delaying pleasure is critical to developing the discipline it takes to properly manage your money.
Click HERE for the study that began the research into delaying pleasure.
3. Wisdom comes through listening and watching older people, your parents, and those that have come before you. You don't have to experience things personally to learn. It's perfectly fine to learn some things from the experiences of others. Watch and listen to those around you that have been successful with money. Listen to them and emulate their success. If you have no examples of this in your family, go find some, and follow them.
4. Spend more energy on solving problems than on worrying about who's at fault. The person who complains about their money situation is far less successful then the person who actually goes to work on the necessary solutions. Go to work on your money situation, instead of whining about it.
5. Integrity and a good reputation are more important than money, titles, and stuff. When someone looks back on your life 100 years after you die, what you possessed and the titles you stacked up will mean a lot less than the type of person you were. Don't sacrifice principles for money.
6. Be humble when you accumulate wealth. Let your work do the talking, not your mouth. Be about it without talking about it. Humility will lift you higher than anything you can ever say about yourself. Real wealth is quiet and moves in silence, while poverty and "wanna-be" rich is flashy.
7. You matter. You are here for a reason and have a purpose on this earth. Your life and your story are gifts to others. People should benefit from the gifts you were born with, and the sooner you discover, accept, and develop them, the sooner you will learn to monetize those gifts. Your wealth lies in the development of your natural God-given gifts.
8. You are really only as smart as your last decision. Always consider the consequences. Your decision-making with money will ultimately decide your fate with money. Think carefully about your money decisions and even if you make a mistake, correct it as soon as possible and keep going. As long as you have time, then you have hope to get it right. Regardless of what your last decision was, make your next money decision better.
9. It's your duty to help and serve people who are less fortunate than you. You are a steward and a manager over your money. Your money is not 100% for you and you only. You should regularly give a percentage, or an amount of your money to others, but how you do that is up to you. The amount you give is not as important as simply honoring the principle of giving.
10. Keep a small circle of friends who have high standards and hold you accountable. If your friends spend frivolously, you will spend frivolously. Like-minded people hang around each other. This is important for your financial well-being. You need to hang with friends who share similar views as you on money and spending.
If you have friends that are mean to you because you don't do the things they do with their money, distance yourself from them. Engage and befriend people who share your outlook and perspectives about money. Your friends should reflect where you want to go, not where you are trying to flee.
11. Nothing in life is free. You have to pay for what you want.
Even the things you think are free, will cost you something:
- Integrity will cost you friends, money, promotions and more
- Common sense will cost you time and friends
- Joy will cost you friends and maybe love ones who want you to wallow in their sorrows
- Love will cost you some focus on yourself, time, and efforts you wouldn't imagine
- Peace will cost you a commitment to time and friendships
- Physical health will cost you time, money, sweat, and more
- Giving to others will cost you time
12. No one owes you anything. Just because you are breathing and blinking, doesn't mean the world owes you something. You get out of the world what you put into the world. You give a lot, and you will get a lot. Nothing is guaranteed, bad stuff will happen, and you aren't deserving of any more than anyone else in the world. Just because you have a degree, or two, means nothing.
You aren't entitled to the vacation, the new pair of shoes, the brand new car, or any other luxury. You've got to plan, save, invest your money, work hard, show up on time, become a person of value, help people, and treat people right.
13, Everyone is not interested in your success with money. When you do well in life and with money, haters will show up. Sometimes they will be the same people you thought would have your back. The people you think will be happy to see you do well may be the same people that will be jealous and envious of you. Just remember that "haters" always punch up. You will know you are winning with money when all of the punches are coming from beneath you.
14 Risks equals rewards. It's ok to take risks, but be sure to take reasonable risks, and take greater risks with money the younger you are. Always make educated and well-researched moves with your money. Invest with common sense, never invest in anything you don't understand, and always remember that the best investment is in yourself.
"Never Invest In Anything That You Don't Understand"