Whether young adults are hoping to buy a car, get their first credit card or find fast cash online, parents will want to instill a basic financial foundation to money management. There are teaching tools a parent can use when trying to address financial responsibilities to their children.
Personal Guidance
Parents with good money management skills can use their own bank accounts and budget management system to teach their children how to support a household based on income. Whatever budgeting style used (software, ledger or spreadsheet) should be explained and discuss other options as well. It is important for young adults to understand what types of payments are priorities and how to manage monthly expectations. It will be quite an eye-opening experience for a child to see how much it actually costs to keep a home or apartment running efficiently every month.
Discuss grouping certain bills into categories and then budgeting set amounts for each one. Talk about wants and needs and what to do when unexpected costs pop up. Here is a great place to discuss credit cards and other cash online advance opportunities. Introduce the three credit bureaus and how their reports are like financial report cards. Just like in high school, a good report opens the door to better school and employment opportunities. It’s a fitting scenario for a young adult to understand.
Spotlight Resources
Depending on the age of your child, you will be able to find fitting online games or websites which will help them understand money further. Young children can learn about counting, shopping and applying discounts. Government websites provide excellent resources to help children of all ages. Older children can focus their attentions to taxes, Social Security and tips to saving for the future. Some children retain information better when it is presented in game format or in addition to parental lectures.
Bank Account
If you haven’t already opened a bank account for your child, teenagers are old enough to begin learning basic bank account lessons. Talk to your bank to see if they offer any information for young adults. Give them information on how the accounts run, consequences to mismanagement and differences between credit cards and debit cards.
Easy cash online doesn’t mean it is best.
Base personal money opinions on facts and figures. Explain interest fees, late charges and overdrafts as wasted income. The more a child understands that those plastic cards do not equal never ending spending opportunities, the better off their finances will be. Discuss the importance of having credit, using credit and managing credit in order to build great credit. Describe money opportunities for those with high scores and consequences for those with low ones. Young adults need to know that bad credit cash online is much more expensive than a credit card.
Parents should begin even in the early years to teach children about the value of money, having respect for money and living within a budget. Going to the grocery store or to the department store will not always equate to a treat or picking out a new toy. Passing by a restaurant at dinner time does not mean that you don’t go home to eat what you already bought. Find as many ways as you can to teach some important lesson in life so your child grows up to understand the importunate to money management.
