Rachel Langlois, a financial expert with Cyprus Credit Union says teaching your kids good money skills at a younger age can create better financial habits. It makes money more abstract, help them conceptualize the ways they spend and save. 70% of high school and college students feel their parents didn’t talk to them enough about personal finances. Below are some simple ways to teach your kids about how to handle money.
1) Have them open a checking & savings account.
- Helps them learn how to separate funds
- Sub-savings accounts
- Use a debit card
- Have them pay “bills”
2) Set Saving Goals
- Long-Term savings for school, car, travel, etc
- Pay a portion of perks, such as phones. Help them practice delayed gratification.
- Offer to match savings.
- Have them play around with online calculators.
3) Encourage Entrepreneurship
- Discuss how they can earn money.
- 14-year-olds can legally work in Utah.
- Instead of an allowance, pay “business” costs.
Below is a list of billionaires and their first jobs.
Bruce Nordstrom, Founder of the retailer Nordstroms started his career at 9 years old, he worked in a stockroom making $0.25 an hour.
After buying his first stock at age 11, Warren Buffett delivered papers and sold pinball machines to earn enough to invest $1200 in a 40-acre farm at 15 years old.
Mark Cuban wanted to buy new basketball shoes, so at 12 years old he went door-to-door selling boxes of garbage bags.
Elon Musk wrote the video game “Blastar” and sold it for $500 when he was only 12 years old.
At 15 years old, Jack Dorsey founder of Twitter wrote taxi cab dispatch software that is still used today.
For more information visit CyprusCU.com