18 Simple Money Rules for Your Children (or Grandchildren)

With the benefit of hindsight and experience, we all would do some things differently if we could go back in time. Decisions we made, or didn’t make, with our money will likely feature prominently on that list. Particularly the “If I only started saving sooner” or “I wish I put more into my pension” types of regret.

However, we are where we are and we can’t go back and change things. But, we can allow our children to stand on the shoulders of giants and learn from our mistakes.

Basic financial principles should be taught from an early age in school; understanding compound interest or about debt will be of greater benefit than knowing the capital of Burkina Faso (Ouagadougou) or how an oxbow lake is formed (the bend in a river is isolated when the river finds a shorter course). The efficient and effective use of money is a life skill that will have huge individual and societal benefits.

So here, as a starter, are 18 lessons that you can add to your own list to pass on to your children or even grandchildren:

It’s never too early to start. Even with your first paycheck.
Set aside money into a savings account which is there for emergencies or unforeseen costs.
Invest money into global stock markets. It’s the key to long-term security and independence.
Be patient. That’s where the magic happens.
Ignore the money hype. Simple principles that have stood the test of time trump the latest fad idea. Every time.
Set aside enough money to be out of work for a year. Whether it’s to protect yourself after redundancy, knowing you can quit the job you hate, enjoying some pre-kids travel, supporting a career change, or setting up a business, a year’s worth of cash is liberating.
Accept boring. It goes with being patient and is the secret to long-term financial success.
Don’t buy things you can’t afford. Credit Card debt or personal loans are wealth destroyers.
Pay off credit card debt in full, every month. See also the point above.
Don’t stress about buying a house. Owning your own home is great but it comes with hidden costs and hassles that renting doesn’t have.
Invest in yourself (your health & education). It will pay the greatest long-term dividends.
Don’t speculate with more than 5% of your wealth. You might make a killing but you might also lose it all.
Don’t judge yourself by your past but use it to inform your future. We all make mistakes with our money, learn and move on.
Don’t judge your life against others. Friends or people on Instagram may appear to be rich but you don’t know the full story.
‘Rich’ and ‘wealthy’ aren’t the same thing. Rich people can chase money and never have enough. Wealthy people aren’t enslaved by money; they have enough for them.
Be nostalgic for the past, grateful for the present and excited by the future. OK, so that’s not strictly about money but it’s a good principle to live by. And, if you use your money wisely it will enable that life.
Create your own money rules. Ones that you 100% believe and will stick to no matter what.
Start now.