Learning to have a healthy relationship with money can start early.
We explore a few smart money management tips to help build a strong foundation in personal finance for your children:
When they’re little . . .
Introduce the value of money: Allowances and chores can be a good first step in creating a strong work ethic.
Emphasize saving: Encouraging kids to save for what they want helps with the concept of delayed gratification.
Comparison shopping: Help them understand finding quality at a bargain
When they’re teens . . .
Introduce them to investing: Custodial brokerage accounts can be a great learning tool (there may be unique tax considerations, so work with an advisor to ensure what’s appropriate).
Teach the importance of credit: Discuss the importance of being responsible with credit & the difference between debit cards & credit cards.
Consider a Roth IRA: If your child is earning income, they can benefit from decades of potential compound growth.
*Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.