7 ways to pass on your money smarts
Put your children on sound financial footing by giving them the knowledge they need to manage their own money well. It may be a richest legacy you can provide.
VIDEO ON MSN MONEY
I watched many friends get into deep debt coming out of high school and college because they had not been taught restraint and good saving practices. Some never recovered. My wife and I did the opposite - saved like mad all our lives. End result is the kids grew up watching us be thoughtful about spending and saving and we accumulated millions. So, we have to continue to train them to be ready to inherit it. They have understood compound interest since in middle school as we discussed those kinds of concepts.
Both are adults now/in college. Each has a credit union savings/checking account with a debit card that we got for them during their senior year in high school. We had them use the to get gas/etc. and understand it wasn't to buy toys or use as free money. It was their money, so they started thinking in those terms. We add ~ $40/month to the accounts for them to spend as they like, or keep. Now, they think twice before making purchases to consider if it is something they need, or just would like to have. So, they are doing well/should be ok because we taught them.
The schools don't teach this anymore, so my humble suggestion is to give your kids the best gift that can help them be more successful in life - the knowledge of how to handle money and to live within their means. It is amazing how far that, and simple manners/treating people with respect will take them.
Pay yourself first
Have an emergency fund - life happens and generally it happens at the most inconvenient time
Save a good amount regularly for your senior self - no one will care more than you care
Live below your means - the Jonses may have many shiny toys, think of the debtload they carry
Trust yourself - you'll know if you are making the right move
If you have questions, ask me
If I don't have a good answer I can help you find the right one
Insure yourself - one tragic accident can wipe your slate clean
Insure your property
Insure your health
Insure agains disability
Insure your life - it isn't for you, it is for those you leave behind that depend on you
Live well - I love you
BTW - thank you Mom, thank you Dad - at the very least for your example and advice - I love you too
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
RECENT ARTICLES ON FAMILY & MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'