HOUSTON - Introducing the concept of money to our kids is a critical life skill.
Helping them learn the value of saving and managing money throughout their lifetime can be crucial information that will affect future spending habits.
Private wealth advisor with Ameriprise Financial, Trevor Shakiba, shares an age-by-age guide to help.
THE SHAKIBA REPORT
AGES 3-5: GRATIFICATION DELAY
- "You may have to wait to buy something!"
- This is a hard concept for everyone including adults
- Wait and save up, then see if you still really want it
- Activity: Set an achievable goal to buy a special toy and then celebrate their success.
AGES 6-10: SMART SPENDING HABITS
- Money doesn't grow on trees, basically it's finite
- Once you spend it, you don't automatically have more to spend
- Activity: Give them some money in the grocery store and encourage them to make choices about which fruit to buy.
AGES 11-13: START SAVING ASAP
- The time value of money and the miracle of compound interest
- When you earn interest on the money you saved and on past interest
- Activity: Do the math and then have them do it.
AGES 14-18: ANALYZE TOTAL COST OF COLLEGE
- Show them how much you have saved up for them
- Activity: Project out future student loans and debt payments.
AGES 18 AND UP: USING A CREDIT CARD
- ONLY if you can pay it off every month
- It's very easy to get caught up into credit card debt, especially without learning the lesson above
- Could easily affect credit history with a few small mistakes
- Activity: Review credit cards together and discuss what are appropriate charges. Also, emphasize cash reserves and begin to target a specific amount.
For more information or to request a complimentary consultation with The Shakiba Group, click here or call 281-724-9917.
The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.
Sponsored by The Shakiba Group
Copyright 2019 by KPRC Click2Houston - All rights reserved.