04-14-2017 06:54 PM
Been thinking on this for a while. I have 2 kids in elementary school. Something I have been podering is that fact that many people have poor financial literacy when it comes to finances and credit and credit scores.
So let me ask the parents out there:
How do you teach your children about financial responisbility?
I am trying to do the basics like savings and the like, but it is a struggle because young kids are all about those latest toys they want to throw their money at.
So what do you suggest for other parents out there pondering how to present this information to the young?
04-15-2017 12:59 AM
04-15-2017 06:24 AM
That is a nice idea. It certainly gives her the chance to understand savings and buying power. Any ideas on how to discuss credit?
04-15-2017 06:48 AM
04-16-2017 07:46 AM - edited 04-16-2017 07:47 AM
There are just three basic money principles: 1) spend less than you earn, 2) put aside for retirement from day one, 3) don’t be late, ever. Any talk of specifics on bank accounts, credit cards, mortgage loan, utility bills etc won’t matter much, unless you first fully grasp these three principles.
Because your kids will inherit your financial habits to some extent by way of parenting, it’s important that your actions reflect your words. And as it often goes, money problems are a symptom of underlying issues, which is why basic money principles are really lifestyle principles.
04-19-2017 09:02 PM
Maybe it's me but you don't have to spend the money you earn immediately. It's okay to get a toy here and there but I do think it's important to save. Personally, I would give my children an allowance each week but teach them to save 50-75% of that money in a 529 or something along those lines BEFORE they receive whatever is left. I would tell them that they are saving that money for the future. They need to understand the power of exponential growth because if they save now, they can watch that money grow immensely by age 18 when they're heading off to college or to start life.
04-22-2017 09:46 PM
04-25-2017 09:36 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.