LONGMEADOW, Mass. (Mass Appeal) - When thinking about preparing for your child's future, most people think about college. But after college, then what? One of the most important lessons you can teach your children is how to prepare for their financial future. Dylan Bond, Owner of Bond Financial Services, shared some tips on how to teach your children to be responsible financially.
Preparing your Children for their Financial Future
Sixty-three percent of kids 18 and under have a savings account, and almost three out of four accounts were opened before the kids were three. Encourage your children to set aside a portion of money they receive from an allowance, gift, or job. Talk about goals that require a financial commitment, such as a car, college, and travel. As an added incentive, consider matching the funds they save for worthy purposes.
Show them the numbers.
Use an online calculator to demonstrate the concept of long-term investing and the power of compound interest. Your children may be amazed to see how fast invested funds can accumulate.
Let them practice.
About half of parents give their children a regular allowance.3
Let older teens become responsible for more of their own costs (such as clothing, activities, and car expenses).
Running out of funds could require them to think about their spending choices and consider a budget.
Discuss the basics.
By the time students graduate from high school, they should at least understand these basic concepts:
Cost of debt
Online games, quizzes, and mobile apps
Bond Financial Services
175 Dwight Rd., Suite 301
For more information or to make a reservation call (413) 754-4747 or visit BondFinancialServices.net.
Upcoming Investment Seminars - 7 Fundamental Strategies to NOT Outlive your money:
Designed for people 50 and older with questions about retirement income planning.
End of October
Golf & Finance
October 10th and 17th
Twin Hills Country Club
700 Wolf Swamp Road
Promotional consideration provided by Dylan Bond Financial Services