What financial advice did you give to your kids and have they followed it?
I’ve always been open with my kid about how much we made, our investments, monthly bills, etc. I have given him the usual advice over the years such as spend less than you make, save and invest for the future, stay out of debt and find balance between living within your means and enjoying life now. He started his first real job 6 months ago and my advice over the years must have sunk in. He’s putting over 10% into his 401K, putting $2,000 a month into his money market account, has no debt and is living within his means and still going out and having fun.
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We have never really sat down and had a full blown discussion, but more like little lessons through life.
When my daughter was younger she really wanted something (a 3DS I think) so she started saving money for it. She made a plan and asked what extra she could do for extra money. It went on sale and she was a little short, so I loaned her the extra (about $10) and she paid me back.
Now, she can be an idiot with money sometimes, but we also taught them not to worry too much about every nickel and dime
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Same here, little tips over the years. My kid paid for his rent, food and beer junior and senior year of college so he knew basic budgeting and paying monthly bills. He had questions when he started his real job like how much to put in the 401k, which investments to put it in and should he get a second credit card. So far he’s off to a good start. A few things that shocked him are how much taxes and car insurance are.
One thing that shocked me is he doesn’t pick up Chipotle or sushi 5 times a week like he did when he was living at home. His company has a really good cafeteria that’s cheap and he cooks dinner at home or makes a sandwich and goes out with his buddies a couple times a week.
My kids are currently 7 & 4. We recently started paying them for chores. There is a list of chores with a price. Most chores are $1-4 each. The tooth fairy also pays $5 in my house. Also if we go somewhere like a camping trip, I will give them something like $20-$50 each. I bought them both wallets for them to keep their money in. They get the choice to spend or save.
My oldest gets money and it is very motivating to her. I noticed that when she is buying things, she spends a great amount of time deciding on what she really wants to spend her money on. If you buy that barbie car, it will be $69 which is almost all the money you have. She will often choose to get something cheaper or save her money. They will also get together are share buying a larger toy.
If mom or dad is buying then the price is not a real concern for them. I decided instead of just buying them whatever they want, it is better to give them some money and let them choose how they want to spend it or save it. If we go to the store and I give them $20 and they don’t spend it, I am better off because they have way too many toys now.
I am open with them about how much things cost. When we go grocery shopping and the total is $300 they are blown away. They are fans of Mr Beast on youtube. I got out $10,000 out of my safe in all $100’s and let them count it. I don’t always keep that kind of cash around but I recently sold an old car and I often keep the cash for my next purchase.
I have started talking to them about investing. I would love to open them a brokerage account but I need to do some research on this on how to best set these up for minors. Obviously I would pay the tax bill and I would do a 100% daddy matching program. If I can get them to invest that $100, they will have much much more in the future. If they keep that $100 cash in their wallet or regular bank account they will still have $100 in 30 years with a net purchasing power of $20. I need to find out how I “transfer” this to them as an adult without triggering a taxable event.
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My son is in college in Orlando.
Two of his roommates, and several of his friends are “VERY” well off. They want to go out to eat a lot during the week for the hell of it. He told me that he will never go out during the week since he has a full service dining hall plan.
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Dearie me.
When I was younger, Daddy used to tell my brothers, but not me, the oldest and only girl in the family, “get a lot while you’re young”. I didn’t understand what he meant for the longest time.
Im ashamed to say I’ve never given my kids for financial training, guess I’ve taught by example.
Nothing too earth shattering. We had this for the kid.
