As a concerned parent I always thought that raising my daughter to be money-conscious and smart with her own money is quite important. Our kids and grand kids are our future. We live in a culture that is constantly pushing credit cards and forcing students to take out huge loans for education. So, I decided to share with you a few helpful hints to pass on to your kids and grand-kids.
1. Teach your child the VALUE of money, no matter at what age. Your child should understand that money does not grow on trees, you have to work for it. You can’t just buy, buy, buy – there has to be a period of saving up for something that you want.
2. Teaching a teen to use and balance a checking account is also important. If the account becomes overdrawn, don’t constantly bail your teen out of trouble; your teen needs to learn to pay for his or her own mistakes.
3. Another critical concept that teens must be taught is the magic of compound interest. There are numerous calculators online that can help teens see this, as well as calculators that will show a teen how long it will take for them to pay off a debt.
4. And finally, setting a good example is perhaps the most effective way to raise a money smart son or daughter. Talking is one thing, but children learn by what they see. If they see you making wise choices they are likely to follow suit.