You might’ve come across multiple articles related to young adults and financial planning, but the thing about money is that the more you read about it, the less it is!
Today’s generation is much ahead of its time, and that’s true in the context of everything – be it technology, general mindset, or anything that strikes your mind. With so much knowledge and the right means in their hands, empowering them with the right financial know-how becomes the duty of every parent.
And this fact isn’t lost on diligent parents, which is why online forums are often flooded with queries like, “what do kids need to know about financing”? and “how to build financial security among young women”?
Considering all this, we’d like to take this opportunity to share some extremely informative and valuable insights that real people have used to instill money confidence in their kids. We hope these real-life experiences will bring a lot of clarity to your current queries and will be helpful in the coming future as well.
#1 – Ramin Hashemi’s early investment strategy
When his daughters were fairly young, Hashemi made a deal with them to double their money. Anything they used to earn from babysitting or referring to soccer games would be accumulated, but only if they wished to invest it.
Later, he would deposit those funds into a brokerage account and purchase low-risk stocks of commodities or companies his daughters could actually relate to. At the present time, both of his daughters are in their late 20s and are successful teachers. On top of everything, they have a fairly good income, investments, and a comfortable retirement plan.
#2 – Steve Cline’s Mantra
Steve recalls the time of the mid-1950s when his father used to give him a 35-cent-per-week allowance along with two pieces of life-changing advice. He says he was told to spend a little, save a little, and donate some to the needy or the church.
His father also said that a dollar saved is far better than a dollar earned, as you don’t have to pay extra taxes. With the help of this brilliant advice, Cline’s parents ended up saving enough money and raised five children in a comfortable environment.
#3 – Debbie and Zimmer’s credit card advice
Debbie and Jay Zimmer made their daughter a nominee to their credit card when she was still a high schooler. But, they added a condition stating that their daughter has to pay them in full in case she wanted to use the card under any circumstances. Great move to teach kids to spend wisely, don’t you think?
Final verdict
If you really wish to instill financial wisdom in your children, starting early on with small habits will make all the difference. As with all other aspects of raising kids, forcing restrictions isn’t the ideal way; building confidence through regular practice is what you should seek.
