All my kids started working at 15 and I taught them about investing their paychecks as well as birthday / Christmas money. I also introduced them to how the house bills were paid electronically out of my paycheck and the household chores they did indirectly helped pay the bills. "What? We have to pay for water? What? We have to pay for electricity? I opened up accounts at the Credit Union and showed them how to track their money on line, how to maximize employer contributions and how the Roth IRA was better with low tax payments. They bought and paid for their used cars.
Great part is that they got very protective and aware of how their money worked for itself. Later, I showed them Net Present Value and Future Value formulae worked. Understanding time value of money and assets is critical in managing their financial future. I also explained how insurance and home mortgages worked.
Un-great part was they played that against me all the time! Hey Dad, I really don't want to withdraw money and lose the interest, can you help out?!
They are all out of college now. They all worked part time in school. The deal was if they worked and made grades, I'd pay their tuition. They graduated with sizable nest eggs enabling them to get a good start after college.
Now, finances and money are a standard conversation as I teach them how to handle their mortgages and investing options and strategies.
Great part is that they got very protective and aware of how their money worked for itself. Later, I showed them Net Present Value and Future Value formulae worked. Understanding time value of money and assets is critical in managing their financial future. I also explained how insurance and home mortgages worked.
Un-great part was they played that against me all the time! Hey Dad, I really don't want to withdraw money and lose the interest, can you help out?!
They are all out of college now. They all worked part time in school. The deal was if they worked and made grades, I'd pay their tuition. They graduated with sizable nest eggs enabling them to get a good start after college.
Now, finances and money are a standard conversation as I teach them how to handle their mortgages and investing options and strategies.