Many younger people today lack financial education, so it is important to teach the younger generations in your life some basic money tips to help them out in life. You can start at a young age by offering simple examples of financial principles and working through them slowly. For example, learning about compounding is vital for their financial education. Start by going through a simple scenario about compounding: someone can get $1000 a day for a month to rake leaves, or take a salary that starts out at 1 penny and then doubles each day for the month. Which salary should they take? Work through the math with your child or grandchild, so they can see how starting with the penny and doubling each day will get them over $10 million over the course of the month compared to the other salary’s $31k. Teaching children about things like compounding early will set them up for being financially savvy later in life.
- 1You are the most important guide to a child learning how to save and spend.
- 2By spending money you will have nothing left to show for it when it is all said and done.
- 3Kids will do what you do so show them how valuable it is to save so that they will imitate your good financial ways.
You are the most important guide in your child’s or grandchild’s life. When it comes to making money matter, your role is even more critical because many of our children are unprepared for life’s financial realities.