9 Year Mortgage on Teaching Kids About Money

When it comes to kids, it is never too early to start talking dollars and sense. However parents are often scared to talk to their children about money because sometimes it means that they will have to admit their mistakes.  The consequences of not teaching these lessons to your children on the other hand could be more dire than ever. Children now a days need to learn and understand much more than basic budgeting. They need to understand how to save for their retirement, manage health care costs and even cope with diminishing Social Security Benefits. Yes, this sounds like we are jumping the gun, but 9 Year Mortgage thinks proper preparation of your children, even at a young age, can start them down the path of a successful financial life. Read on and 9 Year Mortgage will give you tips on how you can teach your kids about money.

9 Year Mortgage with Tips on Teaching Your Kids About Money

Talk Early and Often

9 Year Mortgage says that children start learning about money long before they get their first savings account, job or credit card. Begin having the conversations before they are in school talking about work and money. 9 Year Mortgage thinks that avoiding the subject of money until your child needs a bank account can make the conversation hasty and confusing.

Ideas on How to do This:

9 Year Mortgage thinks that everyday activities are teachable moments. A trip to the store is a good time to explain price comparison, value and inflation. When stopping at an ATM it offers a chance to explain that money doesn’t actually come from a machine. You could discuss earned income, investment returns, and even inheritance. When you are paying your bills have your children come and watch, this would be a chance to talk to them about payment for services, credit card debt and interest rates. 9 Year Mortgage thinks it is very important to talk to your children about debt, specifically loans and credit cards.  You could also talk to your teens about insurance, especially as they learn to drive or as you are selecting what health care options are available for your family.

Encourage kids to work for money.

9 Year Mortgage knows that not all teens have the time to work, but half of college-bound high school students expect that they will have to foot some of the bill. Sometimes an odd job is just as valuable of a learning experience as a steady job

Ideas on How to do This:

9 Year Mortgage suggests start giving an allowance. 9 Year Mortgage says that before your kids are able to venture out for their own jobs. Teach them the relationship between work and money.  You could even have incentives or a bonus system for excellent cleaning and/or chore completion. 9 Year Mortgage suggests building a budget for things you will provide. Take clothing and electronics, you could give them the chance to spend their category budget all at once or learn to save and look for the right item at the right price. You could also have them open a checking and savings account. From this they will learn about fees, account maintenance, and interest. 9 Year Mortgage says you could provide an incentive for being thrifty or offer to match an amount if they put the money into savings. Also 9 Year Mortgage says that many banks and credit unions have special accounts and credit cards specifically for students.

Teach them about investing and retirement savings.

9 Year Mortgage says that waiting until your child’s first full-time job to learn about 401 (K) plans is a big mistake. The sooner they start saving for retirement, the more they will benefit from compounding returns and develop good habits.

Ideas on How to do This:

9 Year Mortgage suggest parents start teaching basic investing. For example, when a balance in a savings account reaches $1,000, show them how to open a custodial investment account. 9 Year Mortgage says that a good initial investment is a broad-based index fund. Your teenagers can go online and research performance and ratings. 9 Year Mortgage suggests that you could  even open an IRA or a Roth IRA. What better way to show the importance of retirement savings than to open a retirement account. Parents could even fund one for there child as long as he or she is earning a paycheck.

What not to do.

9 Year Mortgage says don’t get frustrated because your kids won’t listen or won’t take your advice. Just like you, kids need to make some financial mistakes in order to understand the consequences.  9 Year Mortgage says do not be a lifeline. A bounced check or a bad purchases is a painless way for a young person to learn better money management skills. However 9 Year Mortgage suggests that you may need to intervene if they will damage their credit score. If they get themselves into debt, help them figure out how to pay it off and why it is important to stay out of debt. Also do not set their goals, if you let them set their own financial goals they will learn the basics and the discipline of finance.

Wrapping it up With 9 Year Mortgage

9 Year Mortgage says it is never too early to teach your kids about the importance of financial planning. The sooner your children learn about making wise financial decisions the better off they will be in their adult life. Research shows that children know very little about handling money. For example huge numbers of the country’s children do not know they should pay more than the required minimum on their credit card balance. 9 Year Mortgage thinks it best for parents to start talking about money and how to handle when they think their child will be able to retain the most information, don’t give them all of this information at once either. 9 Year Mortgage suggests starting with the basics, then progressing forward with the things that are harder to understand as the child gets older. It falls on the parents to make this happen, no parent wants to see there child struggling with money problems, so start early and teach them good habits. For more help on talking to your kids about money, 9 Year Mortgage suggests you read Teaching Your Kids to Manage Their Money and Talk to Your Kids About the Market.

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