Do you consider yourself to be rather smart when it comes to handling your money?
If you think there is room for improvement, where might you start?
Do you have one or more children at home and they are old enough to comprehend how money is spent? How about the importance of saving and more? If so, now might be the time to teach them some financial tips.
What Can You Show Your Child?
In giving an old enough child some money tips, here are a few areas to cover:
- How to save – One of the key financial lessons you can give a growing and more educated child is how to save. You may well have set up a savings account for them when they were born. The same may be true of a college account for that day you hope they go off and learn more after high school. Teaching your child to save when they have a part-time job before leaving home is key too. Instill the value of a dollar in your child and chances are they will end up good at saving money before long.
- Finding deals away from home – Are you a winner when it comes to locating deals away from home? In the event you are, the hope is you pass such a thing along to your young one. For instance, when was the last time the family had a nice getaway? When you do travel as a unit, hopefully you have fun and find deals in the process. Travel costs can be rather high at times. As a result, it can put a dent in a family’s ability to have fun and not break the bank when away from home. Do a good job of planning any getaway as early as possible. By doing so, you can oftentimes land better rates. That would be for anything needed like airlines, hotels, rental car agencies and more. The same goes for when you take your children to sporting events, concerts and more. Find deals outside the home and show your children it can be done.
- Avoid debt at all costs – If you’ve done a bad job of running up debt, the hope is your child will not follow suit down the road. Such debt like credit cards, loans and more can really eat into one’s finances. Before the person knows it, they are paying interest fees and in essence giving money away. Do all you can to show your child the importance of paying off balances each month. This is so that debt does not become a major issue.
- Saving for future – Finally, stress when in a first big job the importance of putting money away. Yes, having money set aside for retirement is critical. That is especially true as one hears stories of Social Security maybe running out in the next decade and so on. Show your child how to open up a 401K and other such vehicles when they are in their first real job.
When you teach your child about money, consider it one of the greatest things you can do for your kid.