Dec 12 2011
I’m not a parent yet.Â Hell I don’t even have anything on the horizon.Â Â But as you grow older you start thinking about children and how you’d raise them.Â Â While most of the time women think of things like teaching them manners and how to be stylish (I know that’s sexist and I’m joking), men think about teaching their kids about money and sports and how to get women (assuming they have a son).
When it comes to money there are definitely some things I’ve learned that I’d 100% want to impart to my unborn kids.Â Some things that they would appreciate and others that might annoy them.Â Â Either way, they’ll be better off in the long run.
Here are five financial “rules” I’ll set for my kids…..
State School or Get a Loan
Look, I’m kind of joking here but part of me is not.Â Â If I’m super rich and I can flat out pay for Harvard then sure, I will spring for the bill.Â Â But I know that I went to a college that cost more than 40 grand a year and what did it get me?Â Â A great four years no doubt but I’m sorry to say I don’t think my college had much to do with my job today.Â Â Plus college is fun just about anywhere you go.Â Â If it’s so important to you then get a loan and learn to pay for it yourself.Â Â Better to teach them early.
Start Saving as a Child
I’m not saying a child needs a stock account or anything like that but I will say this.Â It’s never to early to teach them about the power of interest and compounding.Â Â I mean chances are if you have 10 grand when your kid is born and put that money into 5 dividend stocks all split evenly and you reinvest the dividends, by the age of 18 they could very well have 100 grand or potentially more.Â Â Or even just an interest bearing savings account.Â Something, anything.Â Â Â I figure the age of 8 is a good place to start teaching them that for every dollar they earn, they should save at least 10 cents and put it in a piggy bank.Â Then you get more complex as they age.
Learn to make money for Yourself
It’s a lesson I will start teaching my kids at a very early age.Â Whether it’s a lemonade stand or an app they learn to create at the age of 10, my kids are never going to have to worry about “getting a job.”Â They are going to create one for themselves.Â Â Â However, I still want them to experience work for themselves and know how shitty it is to have a boss.
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