Parents can empower their children by giving them the financial education to provide them a financial head start in life. Rather than question whether children are mature enough to learn about finances, it is best to start with the basics.
The earlier children are taught how to manage their finances, the easier it will be for them to properly manage their assets when they become adults. This is why HCR Wealth Advisors promotes the early financial education for children. The following methods can be incorporated to begin your child’s financial education.
Granting allowance in exchange for completed chores is a time-honored process used to teach children the fundamentals of earning money. Getting paid to do chores teaches a critical lesson in financial responsibility. When your child can earn money by washing the dishes or mowing the lawn, they will grow to appreciate working to earn money.
Earning money by doing chores for allowance alone is not enough; it is important to know how to properly budget. Walk your child through this process step-by-step. Begin by having your child take a blank sheet of paper and make two columns—the left column will be for the income, and the right side will be designated for expenses. This process teaches children the value of making a plan for your finances.
HCR Wealth Advisors recognizes the importance of developing a strategy to help clients reach their financial goals, and this is a lesson that even a child can learn to implement.
Another fantastic way to teach your children about finances is to open up a savings account with them. Opening up a savings account will instill an awareness about saving money in your child. Banking will get your child in the habit of making deposits and saving money.
While many parents tend to think their children are not ready to learn about investing, it is a smart decision to familiarize children with investing basics. If children learn the fundamentals involved in investing in stocks, bonds, commodities, etc., they will be better equipped to invest wisely when they are adults.
HCR Wealth Advisors on how they can help protect the sandwich generation: https://www.dailyforexreport.com/hcr-wealth-advisors-can-help-protect-sandwich-generation/
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