5 Money Tips to Pass On to Your Children

Since children (or even teenagers) don’t get Personal Finance education in public school, today I’m sharing 5 important tips to pass on to your children. So they don’t grow up being financially “illiterate”…

  1.  Teach Your Children About Money – The sooner they start to understand how money works, the less likely they will turn into compulsive spenders, without regard for where that money is going.
  2. Open a Savings Account with Your Child – Don’t do it for them, instead, be there for moral support, and guide them through the process. So they become familiar with banks, and understand what having money and savings really means.
  3.  Teach Them About Money When Grocery Shopping – Include your kids when making your grocery list and clipping coupons. Then have them help look for savings when buying food, and their eyes will be opened to the true cost of living.
  4. Encourage Them to Start Investing Early – Your children don’t need to wait till they get their first job to invest. They can start with the allowance they get, or with what they earn doing chores or add-jobs around the neighborhood. Getting them to start early will teach them how to make their money work for them, and give them the power of compounding interest on their money for many years until they turn eighteen.
  5. Lead By Example – As a parent, your example is the best teacher.  Ensure that you are doing all you can to be a good financial example. And that you are giving your children a look at how you manage your finances in a responsible manner.

I’m Alan Akina… Remember, every dollar counts.

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