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.

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VIDEO ON MSN MONEY

6Comments
Feb 7, 2013 8:58PM
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When I was in high school we were taught budgeting in math class, which was extremely helpful.  I don't think it's taught anymore.  Anyway, my mom always said save your money - there beats having money behind you.  She was right.  I also follow this advice I read online - when you spend a dollar, it's gone forever, you'll never get it back, so make sure you really want to spend that dollar and give it some thought before you do.
Feb 8, 2013 8:33AM
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All excellent advice. I believe that one of the best educations you can provide your children is how to handle money.  We have a joke in our house that its "noting but the best for our family, as long as it is on sale and mommy has a coupon."  Our parents taught us that, and we are passing it down.

  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.

Feb 7, 2013 8:45PM
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Passing down money smarts to your children was a good idea in a time when they weren't in debt before they were born.
Feb 10, 2013 3:27PM
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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

Feb 8, 2013 10:56AM
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Probably the best way to maintain you finances is to avoid the children thing altogether.  There is nothing that will drain away your money faster and for longer than children.
Feb 8, 2013 5:06AM
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notice the spelling mistakes on MSN "check" for "cheque"...
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