Our children may or may not want to take over the family business one day. Either way, as business owners who had to learn how to manage the dollars we bring in, it becomes important that we teach our kids how to earn and manage their own money, so they will grow into financially responsible adults. This article provides a few topics we recommend you discuss with the young adult(s) in your family.
Credit cards should be used responsibly
In today's society, credit card offers are sent to young adults by mail even before they have a job. It is important that if your son or daughter (and nieces and nephews) obtain a credit card, that they are taught how to use them responsibly. As you may know all too well, they are wonderful tools in helping to build credit, but if used improperly, they can ruin your credit history and become your worst nightmare.
Practice good car buying
Our young adult's first major purchase is most often a vehicle. Soon after a first job is gained, a car note for a new car is usually next. You give your child a great advantage when you can help him or her understand the importance of saving up for a car, to either buy it outright or at least have a decent down payment that could lower their monthly car note. Also discussing the total costs involved in owning a car and showing them how to determine how much they can truly afford based on their earnings can be impactful. The monthly car note, insurance and upkeep are all costs that need to be considered.
Teach budgeting early
At some point of parenthood, you have probably found yourself saying, "What do you think, I'm made of money?". If not, your time is coming for sure. Teaching our kids how to account for their income and expenses early will help make them more financially responsible, and more in control of their money. Having a budget that helps them see when they have steered off course will show them the immediate effects of not using their money correctly. These lessons learned early will attribute to keeping them in their own home much longer when they move out!
There are so many life lessons are kids will learn, some we can't teach them, but the ones we can, we should. These valuable money talks are not often taught in school and is learned after we stumble and fall through life. However, you can help lessen the amount of financial stumbling blocks your child experiences by having simple talks about money and the lessons you may have learned. I guarantee, you'll be proud of what you will create in the end - a responsible young woman and/or man!
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