Over and over again we have heard our clients say that they were never educated about money in high school or college, which has led to mistakes that could’ve been avoided. As a parent you can teach your kids the basics of finance and help them avoid many of these missteps.
Start by teaching them about budgeting. As soon as they are old enough to handle money start teaching them about choices, and the value of delayed gratification. Encourage them to consider the limitations of the money they have and to prioritize expenditures that are most important to them. Explain to save something no matter what. Ten percent is a good guideline.
As they get older teach them responsible uses of credit. These days individuals as young as 18 receive offers for credit cards. Suggest a card with a very small limit and have them keep a small balance (nothing more than 20 or $30) and pay the remaining balance each month. This will help them to establish credit by building their credit score.
When they reach adulthood and land their first real job suggest that they participate in any company sponsored retirement plan. Share your experiences with them; the good, the bad, and the ugly.
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At Protection Point Advisors helping our clients and their families achieve an optimal level of financial wellness is our highest priority.
Advisory services offered through EWG Elevate, Inc. dba Protection Point Advisors.
This represents a partial list of clients. They have not been compensated and were not selected based on duration, performance, account size.