Ahhh… summer! Enjoy a more relaxed schedule, warmer weather, backyard barbeques and sandy-yet-fun trips to the beach. In between all of the activity, it’s good to incorporate life lessons that don’t require textbooks (or flotation devices).
It’s old-fashioned learning by example!
Starting financial education when kids are young will leave them well equipped to handle money well when they are grown.
Give Kids an Income… and Help them Manage It
It doesn’t have to be a lot. A few dollars a week can do it. With that money, kids can save, spend and give.
Resist the urge to tell them what to do with it.
Allow them to make mistakes.
For example, they may spend all of their money on the first day and have nothing later on when they want to do something else. When they spot a toy they’d like, you can tell them they would have been able to buy it if they saved their money up for it.
The mistakes we make can be the best teacher, leaving us in better shape for the future.
Instill a Healthy Respect for Credit Cards (and Credit in General)
Credit cards (along with student loans) are huge pitfalls for teenagers.
The problem is, once they are in debt, it’s extremely hard to dig out of it.
You can start when kids are little, showing by example that you don’t live your life on credit. Model responsible use of credit by paying off your credit card every month, saving for and paying cash for your car, and using savings for emergencies instead of plastic.
This leads us to the final (and most critical) point…
Let Children in Under the Tent
Children need to see how you handle money.
Tell them you are putting a certain amount of money into savings (and why you are doing it). Show them your tithing or charitable giving. Talk to them when you are at the grocery store, comparing prices.
When walking the aisles of a retail store, let them calculate the best deal – and reinforce it by telling them what they did wrong and right.
When a crisis hits (the car breaks down, the pipes burst, the dog needs surgery), tell them you’re so glad you saved money for this emergency, because otherwise, you’d be going into debt to fix it.
Not all learning happens in a classroom. In fact, the life lessons that your kids absorb from watching you can be even more valuable… and that goes way beyond money.
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.
The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax & Accounting Services, visit https://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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https://twitter.com/SFSTax/
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