Ledia - posted on 03/11/2015 ( 5 moms have responded )
At what age did you really get into Financial Planning, budgeting, and investing with your kids?
My son is 10 now, and I think we are behind in how well we've prepared him. He's gotten allowance linked to chores since he was 3, so he knows the concept of earning and spending. When he was 5, we helped him open his own children's savings account and 529 College savings plan at our bank (the savings acct. is free for him because we bank there as well, and we pay the small upkeep fees for the 529). He dedicates 15% of his income to the 529, and uses the Savings Acct. to save up for larger purchases; he decides how much he wants to put into the savings acct. based on what he wants to buy. That's pretty much where we stopped.....
Now he is 10 years old, and I feel he knows very little about investing to get the most out of his money, and I am not sure we've adequately covered debt. I know so many people who are being or who have been foolish with their finances just because they do not understand budgeting and investing......and many of them are very intelligent people!
So, where did you start with your children?
How did you teach them about debt management? Good v.s Bad debt, when it is okay and not okay to take on debt, and how to manage debt once you have it, and so on?
How did you teach them about different investing options? I want to let him try some bonds and term CD's because they are very safe and provide a reasonable return for a child, but I have not had him save up enough to invest on his own, and that will take him a long time with his current income levels and spending habits. Did you provide your children with the capital for their first investments or have them save it up themselves?
Lastly, when did you introduce riskier investments such as stocks, properties, and other market centered investments? I want to introduce those while he is still young so that he has time to recover if he looses money, and he can learn the value in waiting out market fluctuations....
I know I've screwed up, I'm just feeling rather lost as to how to get back on the right track.....