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17 Ways To Teach Your Kids To Be Financially Independent

17 Ways To Teach Your Kids To Be Financially Independent

Whether your child is just a toddler, a teenager, or a young adult in college, it’s difficult to even think of teaching your kids about personal finance, especially when sometimes you’re not even sure yourself. The best way to learn is by teaching. So here are the seventeen essential things you must convey to your kids in order to instill the idea of becoming financially independent. Who knows, by teaching these essential things, you might learn a thing or two yourself!

1. Tell them not to depend on a traditional job as the only means of securing the future.

It might be difficult to say this to your kids if this is what you’ve been doing all your life, but times are changing and it’s becoming increasingly clear that we must learn to adapt and find multiple streams of income, and even embrace entrepreneurship. The traditional “one job till retirement” model is not working anymore, so get out of denial fast and let your kids learn about entrepreneurship.

2. Stop telling them that buying a house is the safest form of investing.

This is just not true. There are so many ways to invest your money that are actually safer than buying a house. (Roth IRAs, index funds, lifecycle funds, high yield savings accounts, for example!) Educate yourself about the stock market and these forms of investment if you don’t know already, and prepare your kids to go down the correct path when it comes to investing.

3. Teach them how to save money and pay bills on time by automating their finances.

Experts on personal finance will agree with me on this one, (including one of my favorites, Ramit Sethi of I Will Teach You To Be Rich.) Automating your money and bills is one of the best ways to keep your finances in top shape, earn stellar credit, curb overspending, and–best of all–not stress out about paying bills on time. Automation means you siphon your income into various channels each month (or each week) such as into a high yield savings account, an investment account, a credit card, and finally all your bills. This method forces you to “pay yourself first” by saving and investing, and then pay all your bills on time–leaving you with your true budget amount to spend for other things. If you don’t do this already–start now. Why not learn by teaching your kids about it first?

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4. Remind them of the importance and perks of having good credit, and show them how to do this–the right way.

Most Americans do credit cards the wrong way. The most important way to maintain good credit is to stop paying the minimum every month. Pay your balance back in full at the end of the month. If you can’t do this, it means you are living above your means, and that is no way to live. You can’t get financially independent by living above your means. Teach your kids how to use a credit card the right way, and tell them to think about paying it back in full at the end of the month whenever they want to pull out their credit cards to buy something. Credit cards, if used correctly, offer a tremendous amount of perks such a free flights, insurance, and even fee reductions, but only if your credit is in tip-top shape.

5. Help them set up high yield savings accounts, and a no-fee checking account.

Don’t use the brick and mortar banks anymore. The key here is online banks. The lower overhead of not having physical buildings means that these online banks don’t have ATM fees and overdraft fees, and they certainly don’t charge you for a checking account–even if you don’t have direct deposit! These fees are such a scam. Stop paying useless fees to the banks. You can also start by setting up an online, free checking account for your kids (when it is the right time), and help them set up a high yield savings account online as well, so they can have fun watching their money grow. Contrary to popular belief, money does grow–if you let it. My favorite online checking account is the Charles Schwab Bank High Yield Investor Checking Account, and my favorite high yield savings account is American Express Personal Online Savings Account with a current steady yield of .85%.

6. Show them how to invest in the stock market with diversified life-cycle and index funds, and help them set up a Roth IRA as soon as they’re able to.

What? You don’t know how the stock market works? Well, neither do most experts! If you don’t know how to invest yourself, you should learn. But don’t worry–it’s pretty easy. There is such a thing as automatic investing, and it’s not about picking stocks. It’s all about automatic diversification of stocks. You need to stop being afraid of investing. There are many great resources to learn about this now, so start. Even if you are not doing it, your kids should as soon as they are old enough. There are some very easy and safe ways to invest in the stock market. Life-cycle funds automatically diversify your investments between stocks and bonds based on your age, while index funds offer a bit more customization. It will take one weekend to learn more about all this, and then you can teach your kids.

7. Show them how to live within their means by setting a good example first.

Stop buying things you don’t need and accumulating crap. Kids learn by osmosis. If they see you doing something, they will copy. You need to show them what smart buying is all about. First of all, have a budget and stay within it. Your budget can include calculated indulgences, of course! The point here is: you can’t teach good personal finance if you don’t at least try to practice it yourself.

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8. Encourage them to learn marketable skills with the online resources available, such as coding and web design.

Encouraging your kids to learn useful skills is one of the best ways to secure their financial future. Professions that will be beneficial in the future are not what parents have traditionally thought fruitful, such as studying to become doctors and lawyers. It’s actually more beneficial these days to learn creative skills such as design, art, and computer programming (yes, programming is quite creative.) Creativity is not so easily outsourced. Start with online schools such as skillshare, code academy, skillcrush, and code.org.

9. Open your mind about the possibilities of education–the world is changing and so is the university model.

It may not be 100% beneficial for the next generation of kids to all go to traditional colleges and get formal education. MOOCs (massive open online courses) are changing the way we view traditional education, and so is the abundance of student-loan debt enslaving the whole millennial generation. Your child’s generation doesn’t need to go through this. There are better ways!

10. Encourage the use of social media, but also teach them how to edit themselves online.

Personal branding online these days is essential for creating wealth. Kids are well prepared for this if you teach them how to curate and edit what they say and how they say it. Remind them that their online persona cannot be erased, and they need to avoid embarrassing mistakes. Each person should have a message to the world–help them start developing it. They may only be telling it to their friends now, but in the future it will be to co-workers, clients, bosses, and investors. Teach them how to manage their public image instead of completely discouraging the use of social media. It will be a necessary tool for the development of their careers later in life.

11. Instill the fundamentals of leadership into your child, even if they’re introverted.

Leadership capability is a pretty accurate indicator of success in an individual. Leadership skills include proactivity, responsibility, empathy, creativity, vision, and public speaking skills. Don’t underestimate the importance of teaching these types of skills, even if you believe your child is an introvert. Some of the best and most influential leaders are self-proclaimed introverts. Introversion doesn’t mean they won’t be natural leaders.

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12. Be creative with the allowance system. Don’t shield them from the process of earning and losing money.

Someone once said average people think emotionally about money while rich people think logically–like a puzzle game. Talk to your kids about money–don’t make it a taboo subject. Show them how to think about it logically, and make their allowance and wealth accumulation into a game. For example, create a good incentive: “If you make ten dollars selling lemonade, I will double it or triple it.” Encourage working for money using creativity, so that it is not always associated with exchanging time for money but associated with creativity instead. Help them create something, and sell it. Don’t only teach them to sell, teach them to leverage their skills to create something of value. The lemonade stand lesson is so important. These days, it can also be done online (i.e. set up an online shop, help them create a blog.) Tell them to use their allowance to create more money, instead of spending it all away.

13. Tell them stories about the famous entrepreneurs and game-changers who made a difference.

It is important to plant the seed of inspiration. Growing up with a vision–however small–is what differentiates the ones who make it big from the average ones. If your kids get inspired, they will want to create something of value and importance in the world as well. Kids are idealists of the best kind, with beautiful imaginations of endless possibilities. Don’t block this, enhance it by showing them the world of possibilities, not the world of fear, stability, security, and living only for yourself. Give them something to dream about, and someone to help.

14. Don’t just let your kids consume–let them see the behind-the-scenes, the ‘making of’s, and the budgets behind the movies and games they love.

Your kid loves games and movies? Well, that’s a really good thing! These industries are creative powerhouses. You can use this to your advantage. Kids love to see how things are made, the behind-the-scenes, how things are put together. Capitalize on their love of games and movies by showing them the processes behind how these creative projects get made. Show them documentaries about the sets, the teams, the artwork behind it all. Take them to studios or movie sets, find YouTube videos explaining how their favorite games are made, the technologies behind them, the budgets. Before you know it, they will be interested in the craft behind everything instead of just consuming things mindlessly. This will give them so much more to work with when deciding on what they want to do with their lives.

15. Don’t assume your kid knows what they want, but don’t force them down a career path that you think is right either.

Your kid will probably need time to figure things out. But don’t assume you know best. Encourage their natural talents, interests and habits, and let them know it is OK to make money by doing what they love. This is how every successful person is doing it these days. Don’t judge them by your own measures of what it means to be successful. Take a good look at your own advice and life and see if 20 or 30 years ago you would have taken the same path. Maybe, maybe not. Figure out what their strengths are and help them craft their own path to riches–even if it goes against your fundamental beliefs about making money. The game changers of today’s business world are authentic creatives doing what they love. Don’t let you kids fall behind.

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16. Stop teaching your kid how to survive–teach them how to accumulate wealth.

Don’t teach them to be afraid of accumulating money. Wealth can be used to do good in the world. We need more philanthropists and innovators in our world. There are so many important problems to solve and places to go. If everyone settled into living a safe life with a steady job, there would be no advancement. Don’t forget that safety is only an illusion and no amount of “job security” can keep your kids safe. They have a chance to learn from you now–not the hard way by losing a job or by being in massive debt.

17. Forget the lottery mentality. Show them how to take action toward their dreams.

The road to riches is paved with persistent, accumulated actions. Sometimes even mini-actions. Don’t tell your kids their dreams are too big. Don’t tell them the only way to do that is by winning the lotto. It’s simply not true. Help them take the first steps by having 100% faith in their wildest dreams and showing them ways to start on that path.

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Last Updated on July 4, 2019

25 Killer Sites For Free Online Education

25 Killer Sites For Free Online Education

Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

1. Coursera

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    Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

    Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

    Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

    2. Khan Academy

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      Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

      Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

      3. Open Culture Online Courses

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        If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

        Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

        4. Udemy 

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          Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

          Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

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          5. Academic Earth

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            Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

            Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

            6. edX

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              Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

              7. Alison

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                Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                8. iTunesU Free Courses

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                  A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                  Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                  Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                  ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                  9. Stanford Online

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                    Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

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                    Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                    10. Harvard Extension

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                      Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                      Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                      11. Open Yale Courses

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                        Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                        12. UC Berkeley Class Central

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                          Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                          13. MIT OpenCourseWare

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                            Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                            14. Carnegie Mellon Open Learning Initiative

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                              Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                              15. Codecademy

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                                Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

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                                16. Code

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                                  Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                  In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                  Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                  17. University of London Podcasts

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                                    The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                    18. University of Oxford Podcasts

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                                      Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                      The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                      19. BBC Podcasts

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                                        For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                        Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                        20. TED-Ed

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                                          Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                          Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

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                                          21. LessonPaths

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                                            LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                            22. Memrise

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                                              Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                              Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                              23. National Geographic Kids

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                                                The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                24. Fun Brain

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                                                  Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                  Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                  25. Whyville

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                                                    Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                    Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

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                                                    Featured photo credit: Dai KE via unsplash.com

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