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Teaching Financial Literacy to Kids: Difference Between Desires and Wants

Luxuries are good, and we crave for them but there has to be a clear line distinguishing the difference between luxuries and necessities. It is important to use your financial independence cautiously; it is the necessities that need to be addressed before you target any luxuries. Recently, I came across a very good and interesting write up in essayshark.com that clearly brings up the present scenario of luxuries taking over necessities.

We as parents need to guide our kids from the very beginning that they can differentiate between the luxuries and necessities and not get lost in the made race. We live in a society where every single day we are judged, right from the birth. The hospital that is chosen for birth should be no less than a five star or the even the maternity clothes that we opt to wear should be branded. What is the need if you can afford it is fine but if not then what, should you sacrifice some of necessities to pay those bills or over draw your credit balance.

While growing up in my early days there was one bottle of cold drink to share between three siblings and today the scene is that the child refuses to share with his parents but may end up wasting that bottle of cold drink. We were the ones who could differentiate between necessities and luxuries and it is our duty to pass on the same knowledge to our kids.

I have some people who are just able to make their ends meet but when it comes to spending on luxuries they are all Gucci, Rado, Armani and what not. A simple watch from a basic brand also serves the same purpose. Just to show your super cool, chic and lavish lifestyle to impress one you need not adorn the products from these high end brands. It is a basic fact that you need to inculcate in your kids from the very beginning. Just because a friend of yours has a particular play station you also need to buy it. Rational thinking should be instilled in kids and they should be made aware of difference between luxuries and necessities.

The feeling as they would get their first pay in their first job will be overwhelming. Still they need to understand that although it is the reward of their hard work but they need to spend it carefully. There should some savings after you have spend on the necessities and if there is still something left indulge in some luxuries but only on the ones that you can very well afford and is required by you. There is no harm in being in being well groomed or dressed up but it should all be within your means.