Parents Gift to their Children
Parents have an important role in teaching their children about money. There is nothing wrong with actually asking a youngster to do a little chore to earn his or her allowance. Later why not teach them the idea of saving a little each week until they have enough to buy something they want? The concept of earning and saving can be a valuable lesson come the time they have to make financial decisions of their own. That may well come in their late teens with a student loan for college as well as eligibility for a credit card. Some students are mature beyond their years. Others, who may intellectually be very advanced, will not necessarily be good with money. Financial trouble is never very far away for those who make the wrong decisions. Those who begin with good foundations are most likely to have less financial problems throughout their lives.
If you imagine yourself as the parent of someone of collage age, have you ever thought about the financial advice you would give them?
Here’s a few ideas you might like to think about!
Think long and hard before joining the huge number of people in the USA who have credit card debt in excess of any savings they have. They will be unable to cope with an emergency and credit card debt is expensive. At the month end a high level of interest is applied and simply paying off the minimum payment required by the provider will hardly reduce the principal sum at all.
If you cannot afford a new car or the latest fashions, wait until you can before you buy. Who are you trying to impress and even if you do impress someone for a short time, does that really add to the quality of your life? People are more likely to be impressed by you if your character deserves it.
Success is not always judged in material things. Health and integrity are every bit as important as money.
Be realistic in your aims and avoid any feelings of needing something you cannot afford. The misery and stress that can create are not worth it
Think about your future and try to start saving, even a small amount, as soon as you get your first pay check.
Remember the value of money and don’t waste it. If you get into trouble financially take the cheapest route out of trouble. That most certainly does not include a credit card. Realistic online loans are much more affordable and generally available if you can demonstrate regular income and affordability.
Be flexible and adapt to changing circumstances, especially if those circumstances increase the problems that you will be facing. Doing nothing in the face of financial difficulties is not an option.
There is quite a lot to take in here. Hopefully good habits will become second nature and your child in his or her adult years will always give plenty of thought to major financial decisions. Financial management is not an exact science of course. There will always be competing demands for resources and sometimes there is no completely correct solution.
In terms of real estate, that is usually the biggest single financial decision that anyone makes in their life. There is no better way for ordinary people to build up assets than to buy real estate at a good price and negotiate a mortgage over a period of up to 30 years. Just prior to the recession many people were swept along by the prospect of annual growth and over-extended themselves as a result. Negative equity soon followed and foreclosure in a number of cases.
Those conditions were abnormal and those following the principles of affordability when entering the real estate market should benefit from medium to long term. There is certainly nothing irresponsible in investing wisely in property. It does not go against the lessons learnt as a child nor the advice offered above.
Everyone makes the odd financial mistake; the important thing is to learn the lesson. Everyone wants a long and healthy life, as well as a comfortable retirement. Financial stability plays an important role in this and following a few basic rules and using common sense should lead you down the right path to achieving that.