As parents, we understand the importance of talking to our children about sex and drugs. We get them involved in sports early to teach them the value of teamwork and physical health. Yet how often do we discuss budgeting, compound interest or debt management? When it comes to finances, we don't want to stress them out, think talking about money is rude, or feel they don't need to understand finance until they are older. Yet every step our kids take from college through retirement will be directly influenced by their ability to manage their finances: student loans, credit cards, jobs, mortgages, savings, etc. Some schools teach personal finances, but a financial literacy test given by the National Financial Educator's Council found that test-takers from 15-18 years old scored an average of only 59.6%. So it's up to the parents to make sure our children have a financial education before going out to the real world, where they will make financial decisions that will affect the rest of their lives. Of course, no child big or small will respond well or retain a sit down lecture on finances, so you have to sneak in the education; make it fun, interactive and relevant. The more you integrate finances and money into their everyday life, the more comfortable they will be with personal finance as adults.
Read Article: https://www.forbes.com/sites/lizfrazierpeck/2017/06/28/how-to-teach-your-children-about-finances-at-any-age/?ss=personalfinance#2311bb46b2fe
We all know the basic steps we can take to improve our physical health: eat nutritious foods, exercise, get plenty of sleep, and so on.But how do you get in tip-top financial health? Beyond "save more and spend less," many of us don't quite know. So here's one plan you can follow to whip your finances into Olympic-quality shape.
Step 1: Get rid of your bad debt
Carrying around a lot of debt is like going through your day wearing a backpack full of rocks. It slows down all your progress and holds you back from accomplishing things that would otherwise be easy.
In fact, debt can even put you in a state of negative gain. For example, let's say you have $1,000 tucked away in investments that are earning you a 10% return every year. That's a great return, but if you also have $1,000 of credit card debt with an APR of 15%, you're still losing money overall. And 15% interest is actually quite low compared to typical credit card rates. Clear out all that high-interest debt, and you'll give your net worth a chance to really grow.
Step 2: Save for emergencies
Once you've gotten rid of all that nasty bad debt, the next step is to take out a sort of insurance to keep yourself from getting swamped by bad debt in the future. An emergency fund gives you a resource other than credit cards that you can turn to in times of financial need.
How much should you set aside in your emergency fund? Three months' worth of expenses is a bare minimum; six months' to a year's worth is a better goal.
This money should be stashed in a highly liquid savings vehicle -- i.e., something you can tap at a moment's notice. A bank savings account is one option, but an Internet bank money market account will pay much higher interest and still be quite easy to tap when a financial crisis hits.
Read Entire Article: http://money.cnn.com/2017/05/25/pf/perfect-financial-health/
Unfortunately, personal finance has not yet become a required subject in high school or college, so you might be fairly clueless about how to manage your money when you're out in the real world for the first time.
To help you get started, we'll take a look at eight of the most important things to understand about money if you want to live a comfortable and prosperous life.
Learn Self-ControlIf you're lucky, your parents taught you this skill when you were a kid. If not, keep in mind that the sooner you learn the fine art of delaying gratification, the sooner you'll find it easy to keep your finances in order. Although you can effortlessly purchase an item on credit the minute you want it, it's better to wait until you've actually saved up the money. Do you really want to pay interest on a pair of jeans or a box of cereal? (To learn more about credit, check out Understanding Credit Card Interest and our Credit And Debt Management feature.)
Read more: 8 Financial Tips For Young Adults http://www.investopedia.com/articles/younginvestors/08/eight-tips.asp#ixzz4dY8mGKh9
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