As this manual draws to a close, I’d like to share with you on how you can pass on your legacy and wisdom of managing your finances, and it’s none other than:
It’s a tough old world out there and the sooner you start teaching your child about personal financial responsibility the better. Children can learn the basics about money at a very early age.
Start when your child is about 3 years old. Take him or her to the grocery store and explain that the money you and your spouse earn while you are away working is what pays for the food that you are buying. Give the child a small amount of money, let him choose something he wants and pay for it himself.
Begin giving her a small weekly allowance when she 6 or 7 years old. Get her a piggy bank and teach her to save first, spend second…and then wisely. Give her small chores that she can easily manage and attach doing the chores to receiving the allowance. In other words, help her come to the obvious conclusion that work equals income. Do not hesitate to withhold the allowance if the chores are not done and let her suffer the consequences. Don’t provide him with the ice cream cone that she would have bought with her allowance had she done the work.
Pick a date, such as his birthday, to increase his allowance and the chores required of him.
By the time he is 12 to 14 begin encouraging him to earn extra money by getting some jobs on his own…such as mowing the neighbors lawn and, also, encourage him to save for things he would consider long term goals such as buying a car.
After she graduates high school and is ready to start college, get her a prepaid credit card. Explain that you can add money to it as required but, also, explain that you will be able to see exactly how the money is being spent and there are limits.
Here we are finally at the end of this exciting personal finance guide! I trust you now have what it takes to be in command of your money and stretch every dollar you have effectively.
Having said that, all the best in living a happier life with money working for you!Sincerely,