Cut the Financial Umbilical Cord How to Raise Fiscally Responsible Adults
Adulting is all about doing your own laundry, cooking, and grocery shopping. It means making informed decisions about time management, organizational skills, and understanding how to be financially responsible. But how do you teach your teenager financial responsibility? Let’s explore five important lessons your child needs to gain financial independence! HELP THEM FIND OPPORTUNITIES TO EARN MONEY. Before your teen can learn to properly manage their finances, they must first make their own money! If they don’t have a job, encourage them to begin the hunt. If your teen is still too young to hold a job, consider paying them for chores around the house or yardwork. Once your teen has a cash flow, you can then teach them how to separate it into spending money and cash to save. OPEN A BANK ACCOUNT. If your child doesn’t have a bank account yet, it’s time to set up a checking and savings account for them. It’s a great way to provide them with financial independence while they still
have access to your guidance. While credit cards can be scary to trust your learning teenager with, you should consider a prepaid credit card they can use to learn the ins and outs of how credit cards work while still having a safety net to protect their credit.
INTRODUCE THEM TO THE CONCEPT OF INTEREST. Interest can be beneficial or a disastrous hindrance, so your teen needs to understand
how it works. While it can be beneficial for certain savings accounts, it can wreak havoc on credit card debt. Demonstrate interest with different real-life scenarios to show your teen how they can grow their money or rack up tons of debt. Whether your teen has just started earning their own money or is preparing to handle finances on their own, these simple tips can help you start training a fiscally responsible adult.
SAVING, SECURITY, AND SPLURGING 3 ESSENTIAL FACTORS OF A FINANCIAL PLAN
June 18 is National Splurge Day — perhaps an odd holiday for a financial planning and wealth management firm to celebrate. After all, we’re usually in the business of saving, investing, and growing your wealth, not spending it. But money is made to use, and the ability to splurge should be one of your end goals. Everyone who creates a financial plan is seeking security. Our clients want to know they’ll be able to care for themselves and their families in the future. They all aim for a comfortable life where they can support themselves in retirement and feel free of worry about future health care and long-term care costs. They want to feel confident it will be there when money is needed.
Fortunately, splurges are good for us as long as they’re part of a larger financial plan. We all deserve indulgence, and people splurge for many reasons, including self-care, convenience, and pleasure. Whether it’s a fancy coffee from a cafe or front- row seats to a concert, a splurge is something you don’t need that will bring you joy. And it’s a healthy act — when you can afford it. The income plans we create at Patriot Wealth aim to balance your financial security with spending that will help you live a happier life. The definition of “luxury” will look different for everyone, but every plan should have some wiggle room to allow people to do what they enjoy. Finances are a balancing act between what we need and want, and leaning too heavily on one side will always end in regret.
At the same time, few people want to spend their lives counting pennies. They’d prefer to pursue their passions. Some people aim to travel to far-flung
We all save for security, but we should go further and have goals that excite us and give us purpose. The ultimate goal of saving money should be to spend it someday. But we must do so consciously and with a plan in mind.
locales. Others want to build a paradise at home, indulge in hobbies, or enjoy unique experiences. All of those goals require spending money — sometimes, a lot of it.
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