Raising Financially Independent Kids

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In a world of instant gratification and “cash apps” and online payments, the next generation is slowly losing the ability to comprehend the purpose of saving, investing and more importantly, the power of compounding returns.

Teaching children and specifically those middle school to high school ages, the immense impact of saving and spending according to a percentage of their budgets could in fact be the best lesson ever taught.  The ability to manage money does not happen with a financial class or a “self-help” book; it’s a life style, that when taught early, in steps, will yield rewards for parents as well as their children.

This article from one of my favorite money gurus, Dave Ramsey offers some great tips and activities to engage your children in managing their own money, early on in life:

https://www.daveramsey.com/blog/how-to-teach-kids-about-money

Gender Roles and Investing – “Men buy shares from Venus and women have investment savings from Mars”

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There may in fact be gender differences in approaches to investing and history has confirmed that there is a net positive benefit for women investors; however, the approach may go beyond just gender.  The article below from Investopedia is enlightening and includes several pieces of research from England and Germany:

 

https://www.investopedia.com/articles/basics/11/myths-and-realities-gender-finance.asp

Lessons for Teenagers – understanding debt and the cost of a loan

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As so many adolescents and young adults head off to college during this season, they are faced with various financial decisions, many of which are completely new and in uncharted territories.
Starting early with small lessons can help better prepare, especially our young women, to develop the tools needed to engage with a knowledge base instead of emotion when seeking financing for college or a car to get to work.
This article posted by Women Who Money provides some good insights and tools to assist in guiding our younger generation:

https://womenwhomoney.com/help-teenager-understand-loans/