raising money savvy children

3 Secrets To Raising Money Savvy Children

How To Raise Money Savvy Children (hint:  it's never too early, but it can be too late).

Raising money savvy children and teaching them to be financially responsible is like giving them the short cut to being self-sufficient.  Every day, I hear horror stories from clients about their adult children that can't stand on their own two feet.  And what happens?  Parents end up picking up the slack “one more time”, often compromising their own financial security.

Let's Talk About It

Money is one of those very touchy subjects for most.  Not having calm, rational conversations about money makes it very difficult to teach the next generation how to use their money wisely and become money savvy children.  It is important to learn to have unemotional conversations about money.  Think of it as any other tool.  Would a talk about a hammer get you worked up?  Of course not!  Money is nothing more than a tool, one we use nearly every day.  What is it about money that causes so much stress?  Take some time to really drill down into finding your money trigger.  Start taking baby steps to opening up the communication channel with someone you trust.  Building the “money talk” muscle and showing your children there is no need to feel anxious or fearful when the topic comes up will help them feel comfortable asking questions.  And by asking questions and building trust, they will learn about money in a positive, non-confrontational way.

young couple with debt problem

How Would You Handle This Debt Problem?

Do you know anyone with a debt problem?  A colleague presented the following case regarding a young couple with a debt problem to me and asked for my input.  Since debt problems come up frequently, especially with younger clients, I thought sharing their story might help someone else in a similar situation.

The Debt Problem

“I have a couple, married a year ago with a baby. She has a school loan of $80,000 and he brought in $40,000 in credit card debt. All savings of $20,000 has been depleted by baby in hospital. They both have jobs, paying a total of $75,000 and trying to get second jobs. Suggestions? I've never run into this sort of debt problem before in clients. Thanks!”

The family dynamics in this case are pretty intense.  Having a baby has its own level of stress, both emotionally and financially.  When you compound it with a budget already strained by debt, I can only imagine what else is going on.  I am going to walk you through my process and as I do, please think about how you would advise this couple.  If this was your son or daughter (and your grandchild) how would you want them guided?  Unfortunately, having a debt problem is common.  Before I can dive into “advice mode”, I need to do a little digging.

Wall-Streets-Fearless-Girl-how to become financially empowered

4 Ways To Become Financially Empowered

Want to learn 4 ways to become financially empowered?  One of life's great mysteries is the fact that few of us are taught what we need to know about money and personal finance in order to feel secure. Our parents weren't taught so they couldn't teach us. We're not taught and therefore, cannot educate our children. And, our children will probably repeat this cycle unless we do something differently.