If you are a proud parent who would like to begin teaching your children the valuable lesson of how to handle personal finances, what follows are 3 quick tips that will have your children on the way to managing their money more effectively. In the current state of the economy, one would think that many adults need just as much consulting on how to handle personal finances as kids, but it is not too late for your children. Instead of having your kids go bankrupt, or worse making you go bankrupt, the following simple tips should have them on their way to a more stable financial future.
For many kids and young adults, credit cards can be either a great asset or a tough lesson in credit extension. Instead of allowing your child to go off the chart using his or her credit card to rack up huge fees and bills, show your kids how to use them properly. They should only be for important expenses here and there. Also, if your child uses his or her credit card properly, this can help improve their credit history down the line. They will definitely thank you for this in the future.
Instead of simply letting your kid go with the checking account that gives him or her the most amount of free stuff up front, make sure to take some time. Thoroughly explore all of your options, and explain them to your children. You will be glad you spent a little extra time when the trial period is over and the expenses are minimal for ATM charges and withdrawals.
Finally, one of the best lessons you can teach a child is the importance of saving his or her money and to start saving early. Of all of Albert Einstein’s studies, the one that fascinated him the most was how compound interest worked. Make sure to point out to your children that saving money can allow it to grow without doing anything!