Learning About Finances

We just opened a bank account for our 10 year old, so that he can start to learn more about managing money and building wealth. There are several things we want him to understand sooner than later:

1. Stuff costs money and that money doesn’t grow on trees – you have to earn it, save it and work for it.
2. How to balance a bank account. How to both add and subtract money. AND that checking your balance doesn’t account for checks that you have written but that have not cleared the bank.
3. Having a debit or credit card should not give you feeling that you can charge, charge, charge. At some point you have to pay for it!
4. Saving money and investing is the key to financial freedom and potential future retirement. Saving just 20 cents of every dollar earned can amount to a lot over a lifetime.

Hopefully we can help him learn these lessons as a child. As an aside, I know a lot of children who have cell phones but don’t have a bank account.  Which does your child have and why?

My friend, Ilyce Glink recently wrote a great post titled Top Three Financial Resolutions for the New Year. I encourage you to read it and set goals for your own financial freedom! And if you like my blog, please subscribe or link to it.

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