Why it is Important to Teach Your Kids About Money

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Do your teenagers understand how money works? Why is it so important for them to know about money before they start their first job?

how money works,understanding money,teaching kids about money,payroll taxes,credit card debt

Do your kids understand how money works? Do they earn an allowance for doing chores around the house? Do they baby-sit or mow lawns to earn a few extra bucks? Do you take them to your office during school breaks so they see what it’s like to work a ‘real?job?

Do they know the fundamentals about saving? Do they understand how to figure out which is the best deal? Do you set a good example for them about handling money?

When I was HR Manager of a consulting company, we hired a college student to intern during the summer. He came to ask me about the FICA and Medicare deductions in his first paycheck. He politely told me he didn’t want this deducted anymore, and I had to keep from laughing. I started to explain to him that payroll taxes are not an option, but realized this was his first job and he had never been taught how much of his paycheck he would actually get to keep. He truly believed it all was his- no one had ever told him about Uncle Sam getting his cut first.

The statistics on college students who graduate with thousands of dollars of credit card debt are shocking. Turns out, as they signed up for classes in their freshman year, they also signed up for a credit card without understanding what it would really cost them in the long run. So before they even start earning a living or saving in a 401(k) plan, they have to pay off years of debt. It’s sad that they’re still paying for the pizza they ate two years ago.

It’s so important for kids, especially teenagers, to understand the concept of money and how it flows in and out of your hands throughout your lifetime. How to save it and how to spend it. Why is it important to give some back to others through charitable donations. If you don’t develop an understanding of money early in life, how can you possibly be able to manage it later on?

Parents have a responsibility to make sure their kids understand how money works before they go into the world to earn that first paycheck. Having this knowledge gives them the confidence to make smart money decisions as they navigate their way in life.

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A College Student’s Financial Success key

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To be financially successful, may mean making sure by the time you graduate from college, you are not in debt or worse off than you started.

Financial Success,College student,Credit cards,savings

Financial success may come in different forms. Financial success does not only mean that you are financially independent, or you have been able to make thousands of dollars off the stock market. To be financially successful, may mean making sure by the time you graduate from college, you are not in debt or worse off than you started.

As essential as it is to secure a part-time job to support your personal wants, you must be aware of the “hidden regressors?that come uninvited. Your first check in the mail, brings you to some degree, some feeling of accomplishment. Your adult life is just beginning, where you see the value of getting paid for work done. It goes without say that it’s at that time where you start to take on additional responsibilities. The importance of communication and being able to be reached wherever and whenever, prompts you to procure a wireless. The apparent need of getting to and from your job incurs the cost of driving insurance, gas and all other related transportation expenses. Indubitably, acquiring a job doesn’t always mean money inflow; it creates a path for money outflow. One needs to be prepared for the unexpected and the ability to be financially successful.

Credit cards: a friend or a foe? When the due date for bills draw nigh, and the checks are not coming in as often as you would have expected, many students feel pressured to use credit cards as a means of a short-term loan. This method where you plan on immediate repayment is not harmful; however, many students misconstrue that credit cards are an invention to make college life luxurious and comfortable. Wrong!

Saving is sometimes barely doable for some students, since they end up owing money to all these credit card companies. Our system is designed so that without good credit, one is limited from doing a lot of things. It is thus sagacious if we use our credit cards wisely. Use credit cards for things you know will definitely bring you a return. For example, use your credit cards to buy gas to take you to work. When you decide to use your credit cards to buy all the possible clothes on sale; and the purchase is backed by the conviction of repayment after you graduate, put the credit card back in your book bag.

Credit cards can either make you or unmake you; this is because if you use them wisely, once you graduate, it will be easier to get a loan for a new car or a lower security deposit on that new apartment. For the college students that work, there is always a possibility of saving your money, even if you can’t save a lot; you can still save a little. Try to research online, for banks that offer high interest rates on their savings account. The proliferation of online savings accounts has undeniably increased the interest rates, and thus the potential to earn more on your savings.

To be financially successful means to be free from debt, in the college perspective it is to try to avoid a post-graduation debt. The “broke college student?has the ability to be financially successful, if means are taking to save more and use credit wisely.

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