Financial management is not a common topic for parents to discuss with their children. Between schoolwork, soccer practice, and the daily responsibilities of life, this crucial concept is often overlooked. However, HCR Wealth Advisors, a registered investment advisory firm, recommends simple strategies to improve your child’s financial knowledge.
Take out the Garbage
Teach your children at an early age that money does not grow on trees. Children must understand that in order to earn money you must work for it. Your children will learn to respect the dignity of hard work and this behavior will carry into their adult lives. By teaching them that they have to earn the money they spend, it prevents an attitude of being owed a wage without putting in the effort.
Once your children understand hard work equates to earning money, they must understand how to budget. This is another behavior that prepares for adulthood. Teach the concept of expenses to your children so they understand you have to watch what you spend. HCR Wealth Advisors is equipped to educate clients how to budget for many different life events including marriage, divorce, starting businesses, and the death of loved ones.
A simple savings account teaches your children responsibility. Your children will have greater financial savvy and prevent the risk of their money being stolen. Have your children practice using debit cards instead of keeping money in a piggy bank. Your children will learn that money must be protected and needs to be monitored so they do not spend more than what they have. Additionally, you will be creating personalized financial strategies that last a lifetime. At HCR Wealth Advisors, these strategies are taught and advised to clients.
Understanding the basics of investment is critical to financial success as an adult. Begin with stock market simulators to learn about the investment before using the real deal. Next, start small by purchasing a share or two and tracking the performance. HCR Wealth Advisors creates personalized financial strategies through education, trust, and service.
Teaching your children about financial management is extremely powerful. These simple strategies lead to more respectful, responsible, and educated children. Utilize HCR Wealth Advisors to develop life-long relationships and greater financial well-being. Your pockets will be thanking you for it. (Reference: facebook.com/HCRwealth/)
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