Many kids today don’t think about saving money and just spend all of the money that they make from jobs or from their parents. But it is important to teach your children the importance of money at an early stage in their life.
When I was young I spent money left and right without thinking the implications of my spending habits. But just like other bad habits like smoking, spending habits can stick with you the rest of your life. It is important to save your money for worthy investments in the future like a mortgage for a house or an investment. This doesn’t mean that you can’t save any of your money but it is best to try and save early. Making it a habit to save 25% everyday will allow you to learn great money saving habits in the future. It should be the easiest to save when you are younger because there are no bills or obligations.
It is also important to remember not to spend money that you don’t have. A lot of people today get credit cards and spend money as if it was all theirs. When you are young, it is a good idea to start out with a checking account with a check card to be able to gain the benefits of using a credit card without the finance risk. This will help train you or your kids until you are confident enough to get a credit card.
Credit cards are a great convenience but you have to remember the big hefty interest rate behind them. Credit card companies are there to make money off of you so the best way to protect yourself is not let them have it. Get into a habit of paying the credit card bill off in full every month.
These habits should be learned from an early start. This and many other personal financial answers can be found at http://www.financeinfo.us/blog