In my last column marks the national financial literacy month, my suggestion tactics, when they talk about money and their parents can use. This time, I want to focus on some tough subjects likely to come up with these discussions.
Children should be subsidized?
Allowance is the best practice tools, how to teach children financial management. As I always say, the kids will spend unlimited funds, as long as it is yours. When their own cash on the line, this is a completely different. Pocket money to teach them to make a choice, which is the key to smart money management.
At what age should parents start an allowance, and how much?
Age 6 or 7 is a good time for beginners ñ. The children are learning in school money, let them know, 10 assists equal to four quarters equal a dollar. Money is for the children an abstract concept, at this age, maturity, they are getting to understand how it works and to what extent would go. I think this is reasonable, starting with a basic weekly allowance equal to half a child’s age. You can adjust up or down depending on what is expected to cover the cost of subsidies.
Here the big question: Should allowances tied to chores?
I do not think that should be the basic allowance and chores. Children, housework because you ask what they should do; if they mess up, they should not expect to pay to clean up. In addition, after years of writing about kids and money, I understand, parents often ^ hAVE trouble keeping track of chores children (or not), so the system falls apart.
This does not mean that children get the money with no strings attached. The basic allowance with financial responsibility, the children do financial transactions, such as watching movies (primary school-age children), pay for their own collections or beverages; snack after school and shopping excursions with their friends (junior high school children ); clothing and gasoline (high school students).
Teach children the value of paid work, they return to jobs in the job on the basis of extra work (car washing, watering the lawn, vacuuming the family room).
Deal with children are asked to save part of their allowance?
Some children are born with hoarding ERS; you have to pry money out of their own hands (and sock drawers and piggy bank), so that they are part of it. However, if your child splurge, it’s fine to let them save. Just keep the system simple. If you ask them to save a considerable sum of 10% of any subsidy it is easily divisible. P.S: the same rules, if you want them to apply for the money reserved for charitable donations.
What is a good age to teach children about investing?
I score PG-13. Some guidance from parents, grandparents or middle school students are not mature enough to understand, share of stock held by the same margin to be in the company and sharing partners, customers buying the company’s goods or services. So, if you are interested in the stock market, discuss it wit ^ h your children (or grandchildren), or to buy stock shares recently read that they require more investment insights on gold columns raising children …
What parents should or should not have done teenagers and income besides a job?
By all means. It’s fine to teen parents need to save part of their income for college. And young people should be at least partly responsible for the young life of cesium another big pay: clothes, music, cars and mobile phones. Once they start driving, they have to for their own gasoline. If they are in the family cell phone plan, they can pay for their own phone as well as any cost overruns. And concerts and other entertainment should be their label.
I should give my child a credit card?
None. I have helped lift teach children how to manage plastic, starting with cash, then ATM cards, debit cards, credit cards last four-step plan. Once they are comfortable managing their own debit card and checking account balance, they can apply for credit cards themselves. They will build their credit history, and you will not be on the line.