Picture this: your child has turned 18, finished school and they’re off to university or work. Before long, they’ll be talking about moving out of home, or travelling…living their best life!
It’s an exciting time but one that requires a new skill set so they don’t get in over their head financially.
We often associate wealth with money. But wealth comes in many forms – including knowledge and education. As parents (or even grandparents) it’s important to pass on financial knowledge to younger generations to help them make informed decisions, avoid financial stress and have a greater understanding of financial matters.
Here are 5 ways to empower your “big kids” financially:
1. Talk to them about cash versus credit and the importance of not living beyond their means.
2. Teach them that budgeting doesn’t have to mean going without, but more about being aware of where their money is being spent.
3. If they are taking out a personal loan, ensure they understand the difference between fixed and variable interest rates and that they understand loan repayment terms.
4. Help them move on from any bad financial decisions by focusing on what they have learnt rather than what they have lost.
5. Start them of on their investing journey – you’re never too young to start building wealth.
One of the best ways to financially educate our kids, at any age, is ongoing conversations that allow them to listen, ask questions, learn but most importantly leaves them with no doubt that they can come to you for advice.
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