Teaching Your Kids About Managing Money
These points are listed in general from an age perspective. However many can be applied even for older teens and adults:
- Save 10% of all income, including allowances and paychecks
- Pay an allowance
- Assign age-appropriate tasks tied to their allowance
- Open a savings account to teach about saving
- Establish emergency savings
- Establish goal-oriented savings accounts
- Young adults should start saving for retirement
- Learn the power of compounding interest rates and income
- Older teens should obtain a credit card to learn about credit, debt and credit ratings
- Start saving for a down payment on a home
- Learn about debt ratios and the 35% rule
We will expand on this list. We will also explain some of the items in our next post about teaching your kids how to manage money.
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