As a parent, there are many lessons that you’re responsible for teaching your children. From tying their shoes to riding a bike without training wheels, your job as a parent never ends. Then, on top of those responsibilities, you also have to teach them about the one thing most parents don’t feel confident about — managing money.
It's never too early to teach your children about money. In fact, the earlier the better. Here are four money lessons you can start teaching your child today.
In case you haven’t heard, compound interest is the best.
You may remember it as an equation you had to memorize for math class, but it’s so much more than that. It’s the concept that powers all sorts of savings and investment products and, over time, allows you to turn your money into, well, more money!
According to the IRS, the average tax refund is $3,000. Yes – 3,000 big ones! What’s the first thing that you’ll do with your windfall of cash? Save it, of course! While you may be tempted to blow your money on things like electronics or a new wardrobe, we encourage you to resist the temptation to spend. Use your refund in one of these three ways and you’ll thank yourself.
After our first blog post about the importance of budgeting, you were inspired and crafted a flexible budget plan that works for you… right? Okay, if you didn’t it’s okay. Here are some more tips to encourage you to start budgeting.
Budgets are like the New Year’s resolutions of personal finance. We all know we should have one and we all know it’s a fairly simple thing to follow—at least in theory. Like resolutions, we often map out personal budgets with the best of intentions, only to abandon them a couple of weeks later.
Each year, over 25% of Americans make New Year’s resolutions to spend less and save more money. Unsurprisingly, following through on these resolutions is harder than it seems. But, with proper planning and the right financial tools, it’s possible to accomplish this.