Teach Your Children Well … About Finances and Investing

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High debt levels … lack of savings … the inability to budget – these problems all have several causes, but one of them is almost certainly financial illiteracy. Too many of us just never developed the money management skills necessary to cope with our complicated – and expensive – world. But if you have young children, you can teach them some money-smart lessons – and who knows? You could use the opportunity to give yourself a few valuable reminders, too.

Here are some suggestions for a financial "curriculum":

* Save for a goal. In our highly commercialized culture, it's almost inevitable that your children will eventually become somewhat acquisitive. Obviously, it's important to teach them that they can't have everything – and they certainly can't have everything right now. So, once they are old enough to receive an allowance or to earn money in some fashion, encourage them to set a goal for something they want, such as a toy or video game, and to put money aside every week for that goal. It's also an excellent idea to model this behavior yourself. So if you are considering making a major purchase in the not-too-distant future, such as a car, show your children how you are setting aside money regularly for this purpose, rather than borrowing as much as you can or putting the entire purchase on a credit card.

* Establish a budget. It can be challenging to create a household budget and just as difficult to stick to it – but for most people, it's worth the effort. You'll be doing your children a favor by showing them how you have a certain amount of income and where it goes – mortgage, utilities, groceries, retirement accounts, etc. – each month. Explain to your kids that by staying within your budget, you can help avoid problems such as debt and extra fees tacked onto bills for late payments. You might also want to point out that, as your income rises, you can gain greater flexibility in budgeting. Here's the key point: Living within your means pays off in the long run.



* Have fun with investing. It might surprise you, but even young children enjoy learning about the investment process, especially if you explain to them that they can be an owner of a company that makes a product or service they like. You might want to pick such a company and, along with your child, chart its course over time. You could give your child a pretend $100 bill to "invest" in this company and then see how its value changes, explaining along the way that various factors – such as the popularity of the company's products, the skill of its managers, and so on – will affect the stock's price. At some point, you may even wish to purchase real stocks for your child and place them within a custodial account. And you might also want to show your child how your own stocks and other investments are performing. The investment world can be fascinating, and by sharing your enthusiasm for it with your children, you can encourage them to invest throughout their lives.

Knowledge is power. And the more knowledge about finances and investing that you can impart to your children now, the more empowered they will be to make smart financial moves in the future.
 

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Courtesy of Walter Lother, Financial Advisor, in North Adams, at 413-664-9253. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

 


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Macksey Updates on Eagle Street Demo and Myriad City Projects

By Tammy DanielsiBerkshires Staff

The back of Moderne Studio in late January. The mayor said the city had begun planning for its removal if the owner could not address the problems. 
NORTH ADAMS, Mass. — The Moderne Studio building is coming down brick by brick on Eagle Street on the city's dime. 
 
Concerns over the failing structure's proximity to its neighbor — just a few feet — means the demolition underway is taking far longer than usual. It's also been delayed somewhat because of recent high winds and weather. 
 
The city had been making plans for the demolition a month ago because of the deterioration of the building, Mayor Jennifer Macksey told the City Council on Tuesday. The project was accelerated after the back of the 150-year-old structure collapsed on March 5
 
Initial estimates for demolition had been $190,000 to $210,000 and included asbestos removal. Those concerns have since been set aside after testing and the mayor believes that the demolition will be lower because it is not a hazardous site.
 
"We also had a lot of contractors who came to look at it for us to not want to touch it because of the proximity to the next building," she said. "Unfortunately time ran out on that property and we did have the building failure. 
 
"And it's an unfortunate situation. I think most of us who have lived here our whole lives and had our pictures taken there and remember being in the window so, you know, we were really hoping the building could be safe."
 
Macksey said the city had tried working with the owner, who could not find a contractor to demolish the building, "so we found one for him."
 
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