“We’re here for a reason. I believe a bit of the reason is to throw little torches out to lead people through the dark.” — Whoopi Goldberg
Mentoring Our Girls for the Future
“A mentor is someone who allows you to see the hope inside yourself.” — Oprah Winfrey
FINANCIAL ADVISING FOR KIDS
Why should your Kids be Financially Smart Today to be Financially Successful Tomorrow?
Are you teaching your kids smart financial habits? Do they know where money comes from? It is never too early to teach your kids about money.
Warren Buffett is a household name to many not because of any great medical or scientific achievement but simply because of decisions he made as a child. You can say that he was born with “business in his blood” as his father was an investor. However, he was far from rich. He started reading books on investing at the tender age of 7 years old. At age 11, he read every book on investing at the local public library in Omaha which he patronaged almost every day. He also bought his first stocks at the age of 11 where he paid $38.00 a share. Today, this American businessman, at the age of 87, is worth $77 billion.
Five Simple Steps About Money to Get Started With Your Kids:
#1- Teach them the language of money.
It’s never too early to get started about money with your kids. It is no different than teaching them to read or to learn a foreign language at an early age. Starting early helps them to grasp the value of money, gives them a head start and helps in creating more responsible adults.
#2- Start a piggy bank.
The piggy bank will provide a visual representation of the process of saving. They can actually see their money “grow” in their piggy bank whether it’s a clear jar that they can see through or a piggy bank where the growth is measured by the weight.
#3- Open a high yield savings account.
With a savings account your child is able to physically take the money saved in a piggy bank, and transfer it into a place that you can reinforce as a safe place to store the money they have saved. They are able to walk into the bank, and go through the transaction process as an adult by sitting and talking to a bank teller. This will help to reinforce financial values that can stay with them through adulthood.
#4- Let them help in the household financial decisions.
Think of an event or activity that your child is eager to participate in such as a birthday party. Make a list of all the items that you will need to purchase for the party. Get them involved in the financial planning phase and let them know how different financial decisions are made when determining the budget for different items.
#5- Help them write and set goals.
To help kids understand the language of goals and to feel comfortable, first explain the concept of goals and then share your own goals and aspirations with them. This can range from your plan to lose a few extra pounds, taking that last two classes to complete your degree or whatever it may be. Modeling your own goals helps to create believers and doers in your child. Teaching your child about goals can lead to great benefits such as taking the initiative to complete chores, school projects, and other activities without being nudged by you.