I Grew Up Poor: Here Are the 3 Money Lessons I’m Teaching My Kids

Many of us grew up without access to money and the benefits that come from having it. Not only does it teach you at a young age how to handle financial hardship, but it also teaches you what you might do things differently when you’re an adult — and especially when you’re a parent.

James Comblo, the president and CEO of FSC Wealth Advisors , has taken this responsibility to heart. Comblo grew up in a family with limited financial resources, so he learned early how to cope with never having enough. He wanted things to be different for his kids.

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“Having grown up with little means, I take educating the next generation about money very seriously–specifically my daughters,” said Comblo.

Comblo wants to help his daughters develop a good relationship with money, giving them the tools they need to make smart financial decisions .

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Focus on Value instead of Money

One of the most meaningful lessons you can teach your children is to appreciate the value of things beyond just their price tags.

Growing up poor often means it’s easy to see work only as a way to earn money. But this mindset can trap you in a job that doesn’t offer much room for growth or fulfillment.

“Most people think they should work for money but in reality, they should be creating value,” said Comblo. “Creating value will generate rewards. Material value — problem-solving or producing goods creates financial rewards. Creating emotional value generates rewards in the form of love and friendship. There are numerous other types of value, each with its own reward, but the key is to teach the kids to create value. The rewards, like money, will follow.”

Encourage your kids to focus on creating value in everything they do. When they see the bigger picture and understand the long-term benefits of their efforts, it can open doors to better job opportunities and higher earning potential. By looking beyond immediate financial gains, they’ll be more likely to find rewarding careers and achieve lasting financial success.

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Spend Less Than You Earn

Spending less than you earn: It sounds simple but can be difficult to implement.

From his childhood, Comblo knows firsthand the importance of financial discipline. So now he impresses upon his daughters the lesson of always spending less than they earn.

“There is a specific formula for how you should be saving and what types of accounts those savings should go into but essentially you want to pay yourself first ,” said Comblo. “Be smart with the money coming in. Immediately split it into different categories: saving, investing, and sharing.”

Start by teaching your kids the basics of budgeting. Help them understand how to prioritize their spending. You can use age-appropriate methods, such as giving them a small allowance. Then introduce the concept of delayed gratification by letting them save up for a big purchase.

The Difference Between Assets and Liabilities

Believe it or not, one of Comblo’s favorite lessons is to teach the difference between assets and liabilities.

“At its most basic level, assets are things that put money into your pocket while liabilities are things that take money out of your pocket,” said Comblo. “Most people believe money is for spending, they earn money so they can purchase the things they want. But money is not actually for spending, it’s for investing. You can spend the profits from those investments. And it’s important because once you spend money, it’s gone forever. But an investment will continue to grow and replenish your money over time.”

He wants his daughters to realize that money is not just a means to buy things. It’s a tool that can be used to create more wealth. A savings account that earns interest is an asset, while a credit card balance that charges interest is a liability.

This article originally appeared on GOBankingRates.com : I Grew Up Poor: Here Are the 3 Money Lessons I’m Teaching My Kids