Fix My Finances

A whole generation of kids do not know the first thing about saving and experts say that is a step that should begin at home but doesn’t. Parents need to teach their children how to save and because many do not, their kids go out into the world and spend like their is no tomorrow.

They see credit cards as a gift. They swipe the cards like crazy and spend, going well over their limit and do not seem to understand that they have to pay it back with interest if they are late or make small payments. At young ages some older teens are already on the verge of bankruptcy but still does not slow down on their spending.

One way parents can help their kids is to open a savings account for them while they are young and teach them to put some of their allowance in it. Get them a piggy bank and let them put every penny they find in it. You can teach them that money saved grows down the line. That if you spend money as soon as it touches your hand, you will be living hand to mouth, paycheck to paycheck.

One other way for parents to teach kids and start saving for their college funds or retirement is get a Roth IRA. It is really a great way to save.

Marsha James wrote this on September 12th, 2006 and filed it under Budgeting, Credit Card Debt, Debt, Fix My Finances, Saving |