Financial Independence

October 7, 2009 | 24 Comments

This year’s trying economy is a great time to educate kids about real-life issues with money. If you want your kids to become financially responsible teens and adults here are a few great tips from USAA magazine:ZNZI3YCA9KX4MNCAE3F1HVCALQWMK3CAC2KM3ACAYPVVY6CAK3Z2FOCAXJT8NDCA3HVVJVCAVWJDQFCAXCP6KUCANM3K3ICA7Z38F9CAT032RKCAZG0B9TCALRGBK9CAU9NE4LCAOW4FMBCAA9YG4G

  • Give kids a plan. Train and teach your child to be financially responsible. Once allowances come into play, increase the amount of money he/she earns dependent upon the chores completed. Let your child know what to expect and don’t spring new responsibilities on them without warning.
  • Make Family Money Visible. Share your money issues with your kids, but don’t add stress to their lives about it. Simple letting them know that money is a family issue.
  • Avoid Overindulgence. Help your child understand the importance of saving so that they can be motivated to buy things they really want.
  • Make a contract deal. Require your child to talk with you before signing any financial contracts, especially for credit cards. A recent study by Sallie Mae, the country’s largest student loan provider reveals that the average college student carries $3,173 in credit-card debt.
  • Don’t always bail them out. At some point, your teen will become short on cash and that’s a good lesson. Never give teens at home advances on their allowances unless you want them to rely on payday loans and credit cards as adults. It’s also important to review your teen’s spending habits before they get out of hand.
  • Teach them the value of investing. A great option is to open a Roth IRA. Kids are eligible as long as they earn an income. It will prime your child for investing in his retirement plan and for other financial goals when they are adults.
  • Explore Financial Classes and other Resources. It’s a good idea to encourage your child to wait until their junior or senior year of college before  opening a credit-card account. Encourage your child to take classes on financial responsibility so they will be better equiped to handle credit cards later on.

Source: www.usaa.com


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