Young People Need To Know More About Money
With gift giving season around the corner, high school graduates preparing their financial transition plan for their graduation portfolios, and young adults struggling to make their rent, college fees and still have a social life, it is likely a good time for me to bring up the subject of MONEY.
Even though we, as parents, think we're doing a great job by saying things like: "Do you think money grows on trees?" or "Do you think I'm made of money?" or "Save your money and then you can buy it", still haven't given our children the "how and why".
Sure, some financial information is shared with students in Planning 10, but few of them are ready to understand anything about the benefits of earning and saving, let alone the power of compound interest.
One of the best things that you can do for your kids is to teach them about saving, setting goals (like saving for a snow board or ski pass), and even investing.
I know the stock market is terrible right now, but all the more reason one should consider investing while some of the prices are low.
Statistics have proven over and over again, that over a ten-year period, the value of your investment will go up, even by 10% or more.
Young people don't know what it costs for their keep.
They have no idea about insurance other than for their car; they haven't figured out the cost of moving out of their parent's place and setting up their own space.
For many, it comes as a shock that they have to come up with one and half months rent before they even move into their apartment or basement suite.
Many parents have different views on giving their children an allowance; however, once a youth is making some money (and contributing to the maintenance of the home by cleaning their room, putting dishes or toys away, etc.
), they start to get the idea that their time is of value and they can have some privileges with their new earnings.
I remember at 13 years of age, I decided that all my babysitting and paper route money would be saved for a trip to Europe after I graduated.
Each time the big juice can became full, I'd count it and put it safely into a savings bond.
By the time I graduated from university, I had saved enough money to take a 7-month trip to Europe including a 30 day cruise from Vancouver to England.
That was one of the best lessons ever to create a budget, save, figure out my costs and expenses, and invest in a memory that I still can't put a price on.
If you want to start your children to start on understanding money, the book, "Rich Dad, Poor Dad", by Robert Kiyosaki is one of the best and easier reads for learning about money and investment.
Do your kids a favor and tuck it in their Christmas stocking on their desk.
It just might be the most valuable thing they receive this year!
Even though we, as parents, think we're doing a great job by saying things like: "Do you think money grows on trees?" or "Do you think I'm made of money?" or "Save your money and then you can buy it", still haven't given our children the "how and why".
Sure, some financial information is shared with students in Planning 10, but few of them are ready to understand anything about the benefits of earning and saving, let alone the power of compound interest.
One of the best things that you can do for your kids is to teach them about saving, setting goals (like saving for a snow board or ski pass), and even investing.
I know the stock market is terrible right now, but all the more reason one should consider investing while some of the prices are low.
Statistics have proven over and over again, that over a ten-year period, the value of your investment will go up, even by 10% or more.
Young people don't know what it costs for their keep.
They have no idea about insurance other than for their car; they haven't figured out the cost of moving out of their parent's place and setting up their own space.
For many, it comes as a shock that they have to come up with one and half months rent before they even move into their apartment or basement suite.
Many parents have different views on giving their children an allowance; however, once a youth is making some money (and contributing to the maintenance of the home by cleaning their room, putting dishes or toys away, etc.
), they start to get the idea that their time is of value and they can have some privileges with their new earnings.
I remember at 13 years of age, I decided that all my babysitting and paper route money would be saved for a trip to Europe after I graduated.
Each time the big juice can became full, I'd count it and put it safely into a savings bond.
By the time I graduated from university, I had saved enough money to take a 7-month trip to Europe including a 30 day cruise from Vancouver to England.
That was one of the best lessons ever to create a budget, save, figure out my costs and expenses, and invest in a memory that I still can't put a price on.
If you want to start your children to start on understanding money, the book, "Rich Dad, Poor Dad", by Robert Kiyosaki is one of the best and easier reads for learning about money and investment.
Do your kids a favor and tuck it in their Christmas stocking on their desk.
It just might be the most valuable thing they receive this year!
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