ACCESS Newswire
06 Sep 2019, 19:07 GMT+10
Financial Advisor, Darcy Bergen, Helps Parents Prepare Their Children for Financial Success in Adulthood
PEORIA, AZ / ACCESSWIRE / September 6, 2019 / Parents are constantly working hard to make sure their child has everything they need before they move out or go off to college on their own. Countless hours are spent on studying and homework, playing sports, and learning lifelong lessons. While managing money is one of the most important aspects of our adult lives, many parents neglect teaching their children how to handle finances.
Learning financial responsibility at a young age can help children make wise decisions as a young adult, which in turn sets them up for a life of success. This can lead to a head start when planning for retirement and saving for large purchases like a home.
Darcy Bergen, founder of Bergen Financial Group, shares 6 tips for teaching children financial responsibility.
Take your child grocery shopping. This is an opportunity to teach your kids how to balance a budget while shopping for your family's weekly needs. Darcy Bergen suggests increasing their budget in increments to provide more opportunity for practice as they get older.
Next, Darcy Bergen suggests giving them real money to manage. Start with small activities such as providing $5 to pick out a toy or snack. This not only helps them learn how to count change, but they will be more confident in the future. This will set them up to have a better idea of how far a dollar gets you.
Teach the Save, Spend, Give model. For older kids, it is appropriate to do this in bank accounts and with budgets. With children, use three small jars with labels so the child can make decisions on how to allocate their money. Darcy Bergen recommends making them save for a goal that is far away to teach patience.
Practice what you preach. If you lecture the importance of frugality and saving, but make purchases that are unnecessary and have very little savings, your children will more than likely not abide by what you preach. Children seek a role model and by showing them good financial habits, they will be more likely to pick up on those.
Pay your children an appropriate rate for extra chores they do around the house. If your child offers to mow the lawn, pay them the amount that is fair for the job done. If the job was done poorly, teach them that unless the job is done correctly, they will not get paid. This increases the child's exposure to how services should be performed in real life.
For older kids, teach the importance of avoiding high interest debt. The average American has around $7,000 in credit card debt. The high interest debt takes a lot longer to get rid of and as a young adult, it is better to avoid it all together. Young adults do need to build credit, but they don't need a high credit limit. Parents should help their children seek credit limits no higher than $500 and limit the number of cards to just one. Teaching good credit card practices is crucial for the young adult in this day and age.
CONTACT:
Caroline Hunter
Web Presence, LLC
+1 7865519491
SOURCE: Web Presence, LLC
Get a daily dose of Los Angeles Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Los Angeles Herald.
More InformationMADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...
SAN FRANCISCO, California: Grammarly is doubling down on AI-powered productivity tools with the acquisition of Superhuman, a sleek...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...
SANTA CLARA, California: Executives at Nvidia have quietly been cashing in on the AI frenzy. According to a report by the Financial...