As they have demonstrated with unwavering consistency, kids are financially illiterate. Many parents understand that this puts them at the mercy of the shark-infested waters of the financial services industry and are seeking a remedy.
Here is a good article on "What Kids Should Know About Money At 9, 13, 18 and 23."
I would add that someone in the family should sit down with the "kid" when they get their first real job and carefully go over the benefits package, including insurance offerings, health insurance choices, and especially the company 401(k). At this point, carefully review the importance of exploiting the company match as well as saving and investing at a young age.
Bankrate offers a simple savings calculator that can show the value of saving at a young age.
Two books I recommend that can be read profitably by parent as well as budding careerist are:
I Will Teach You To Be Rich and Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School
Thoughts and observations for those investing on their own or contemplating doing it themselves.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Saturday, August 6, 2011
Financial Concepts Children Need to Know at Various Ages
Posted by Robert Wasilewski at 9:11 AM
Labels: financial literacy
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Absolutely great advice Robert! Parents should sit with their kids to go over the concept of money and how small decisions (roth?) can have tremendous impact later on.ReplyDelete
I also think it would be an excellent idea to plant in the seed of the benefits of saving by doing an 'allowance match' if your kid saves instead of spends his allowance! What better way to teach what a 401K is?! :)
BTW, I can't see your recommended books. :(
re: MoneyCone I agree with the allowance match for saving.ReplyDelete
I'm not sure why you can't see the books unless you have firewall that is blocking them. I'll check into it, thanks!
Orlando financial planner can help you analyze your current fiscal health by assessing your income, taxes, investments, assets, liabilities and estate plans.ReplyDelete
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