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Early Money Lessons Lead to Adult Success

Early Money Lessons for Adult Life

They don’t teach handling money as a school course. There is plenty in the education system that should lead people to be able to manage their money but it is up to the individual to put the pieces of the jigsaw together to be able to budget successfully. It’s never too early to understand how to deal with money and parents should consider teaching their children how to do it, even if they have not been particularly successful themselves.

The formative years are by definition those when behavior for life can be established; some learn more quickly than others of course, but if the lessons are learned then life is an opportunity. Some little lessons learned as a youngster are invaluable. Children who learn the value of money at an early age are likely to be better at handling it in adult life. It won’t guarantee they will become rich but they should be able to handle most situations, prepare properly for retirement even those it is so far away.


The lesson should begin by giving a child an allowance but requiring them to do some simple tasks each week to earn it. Certainly the tasks should be fun; they may even include things like helping with a stand at a fair in the summertime. Money is earned is the lesson.


The next lesson is all about the use of the money; do you save it, spend it or share it? Perhaps a balance of all three is the way ahead; the concept of a savings account is very important because it is something that seems to be somewhat lacking in today’s American society. It is not just a legacy of the recession; there is a great deal of debt, especially on credit cards, insufficient provision for retirement and only a minority with a significant emergency fund.

First Financial Responsibility

It’ll be a few years before your child will be in a position to build up any debt but hopefully before that can happen either by taking out a student loan or getting a first credit card, he or she will know how to act responsibly. Cards are convenient but dangerous at the same time. The level of credit card debt in the USA is worrying. Balances incur high level of interest which is sometimes difficult to pay off. If anyone in trouble has sense he or she will get their credit limit down to zero and never build it up again. A consolidation loan is one way to do that with installments over a fixed term replacing the balance. Interest rates on such realistic fast loans website are much lower than on a credit card.

It is worth as a parent giving a child the idea of saving by offering to match anything they save. That’s a great incentive as well as being something that is worthwhile doing when planning retirement and matching an employer’s contribution. It is perhaps a little early to introduce the idea of investment which they may do as adults but they can be taught the idea that money can create profit and more money as a simple concept.

The Lessons

Once your child reaches adult life some of the things you have taught years before will naturally become part of everyday habit. That does not mean that he or she will not make financial mistakes. The recent recession proves that even professionals manage to do that. However the lessons about saving money, treating money as something that must be earned but that can then be used in a positive way will all help.

Going through life there are many financial decisions that everyone has to make. Buying a piece of real estate is one of the biggest. However on a daily basis spending, and controlling spending, is equally important. Debt can be extremely stressful as many Americans are finding today. Those in regular employment however can find solutions to the problems they are facing, even if that involves borrowing to enjoy a more competitive interest rate than they are currently paying on credit card debt. When in doubt think back to the things you were taught as a child if you are currently in trouble. You may have been neglecting some simple lessons; they can help you get out of trouble.

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