5 Ways to Set You and Your Children on a Path to Financial Success
You're never too young to start learning how to deal with the tool called "money." Once children are old enough to complete basic age-appropriate chores and want to spend money on things they see when out shopping, it's time to get them on the path to financial success. Teachable moments happen when kids start saving and spending money they earn.
Help your kids make good financial choices by focusing on why you're teaching them, letting them be part of the process, giving them money to save and spend, setting goals with them, and understanding the basics.
A Few Tips on How to Deal with a Tool Called "Money"
Give your time and explain the “WHY.” It’s common sense not to spoil children, but we as parents often do because we can afford to
and because we want to give our kids the best of everything. However, this can lead to our kids not learning how to make good choices as they start earning their own money. It is important to take the time and explain why you have to say “no” to some requests.
2. GET THEM INVOLVED
Money lessons come up each and every day –from going to the grocery store, buying a car, or a fun one, planning a vacation. All of these times can be used to teach lessons on the value of a dollar. Let’s look at planning a vacation: This can be a fun way to get children involved and allow them to work
within a budget. Involve them in determining where you’ll go; if you’ll drive or fly and what activities you will do. Talk to them about how much things cost, give them a budget (or dollar amount) that they can’t go over. Help them understand the importance and value of sharing time vs spending money.
3. GIVE THEM AN ALLOWANCE
Even for young kids, starting with a quarter ($0.25)–and it grows as they do. Help them set goals for their money –from giving their tithe (10%) to church or charity, to buying a candy bar, to going to a baseball game to buying that thing they think is most special. As kids get older, many kids get a part-time job so that they have money to pay for ‘fun’ things, but it is important to have them start also paying for ‘life’ things –their cell phone, some of their clothes, dinner for the family (even if it’s pizza) gas to go somewhere or part of their car insurance coverage. Having “skin in the game” helps them to learn.
4. TALK ABOUT THE BASICS
Always talk to your kids about what things cost. Things like using credit cards, what interest is, what current rates are on loans and what a debit card is. As they get older, but not much older, talk about how much college costs, why they may want to go to college or not; what is a technical school and its cost.
5. LEAVE A GREAT LEGACY
This is an important part of your life’s work. There are lots of places to get information on money. The Bible is a great resource! At the library you can find children’s books on money to read fun stories or make up your own. Take them to the bank, or to your friend at the car dealer. Talk to them about helping others, supporting the people and causes that are important to you; then ask them who’s important to them and who they would like to support. Helping your kids become financially literate is a great way to set them on the path to financial success.
Remember, for yourself and for your kids: You reap what you sow; that hard work is never a waste; not to give up when you fail; and never stop in your pursuit of loving, teaching and supporting your family, because that is your legacy. (1 Timothy 5:8)
As you’re in the middle of your earning years, raising a family and building the life you always wanted life can get busy. Now is the time to start planning because you know that time flies. Your kids' future and your retirement plan deserve some attention if you are going to be prepared for your next stage of life. Schedule a free consultation with one of our trusted financial planners to help you navigate your financial future.
At Medallion Financial Group, we believe financial planning is about Family. We have been helping families invest in the future since 1987 through a holistic planning approach. We recognize there are a variety of needs when it comes to retirement planning, plan rollovers, annuities, college planning, life insurance options, and investment management. It is easy to get lost in a sea of choices. Our financial advisors help with the basics and beyond to enable our clients to get the education, advice and management they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client expectations – because we have high expectations of ourselves.