But if you boil it all down to the two most important financial lessons. If your kids are like most and want the bottom line please and then leave me alone to play video games then it's these;
- Live beneath your means
- Stay out of debt
Instill these two super important lessons and you will have done them the biggest favor you can. I don't care how wealthy you are and how much you leave to your kids, if they haven't learned these lessons, they are doomed. We all hear about kids inheriting millions only to end up bankrupt.
Look out for teachable moments regarding living beneath your means. It's ok to say, we cannot afford that and if we did buy it, here is the problem that would create.
Teach them about debt, when, not if, but when they come to you when they need something that you agreed would come from allowance but they've already spent their allowance, allow them to borrow money from you at 15-20% and enforce this next allowance, they will quickly learn that borrowing money is money down a hole that they'll never see again.
Teach them that instead of borrowing at 15%, that they could save at 5%, the difference is a massive 20% and use any online calculator to literally show them what it means to them, they will get it.