Financial advice from parent to child. The most valuable legacy parents can provide to their children is good advice. Children must be provided with sound financial advice from a young age so that they can grow up to be financially independent and successful. Teaching kids about how to handle their money at an early age will instill good financial habits that will follow them into adulthood. Here are some key lessons to pass on to children.

Spend wisely

Teach the kids how to spend wisely. Giving children the ability to make their own financial choices, and mistakes early on gives them a great idea of how to manage their money. Teach them to spend wisely. Make them carefully consider what they need and what they want. Give children an allowance to make small spending decisions.

Start banking early

Advice is great but experience is better. Open a bank account for them. Have them manage and track their spending at a young age, building up good financial habits early. Make sure to be there to guide and advise them so that they learn the right lessons. Help them and enable them to budget.

Save

Open a savings account for children and teach them to save up.  Let them see how their money grows over time. They’ll be grateful when that money allows them to travel, pays the rent, buy a car, or gets them out of a tight spot in the future. Teach them to save at least 10% of their allowance or earnings. Remind them to save when that first paycheck comes in.

Make sound investments

Investments are the best way to grow money. Teach children how to make sound investments. Talk openly about personal investment successes and failures and let them learn how to invest. Letting kids see how money makes more money can get them hooked on investing and teach them the importance of developing the habit of investing early on.

Avoid Debt

Debt is one of the most dangerous financial pitfalls. Teach children not to spend more than they earn. It doesn’t matter how money is built, debt can make it disappear rapidly. For the inevitable debts, teach them to pay off debts as quickly as possible to avoid interest. Many banks offer low-limit credit cards to youths and students. It is a great way to teach them how these systems work and it gives them a great credit history.

Teaching children valuable financial advice ensures that they will make the right decisions in the future. Learn how to best manage finances with Remnant.