The National Teach Your Kids to Save Day is recognized each April highlighting the importance of developing good financial habits a young age. Dan Ament, Financial Advisor with Morgan Stanley joins us to share some tips to get your kids ready for a successful financial future.
Teach Your Kids to Save!
Ages 6-10
- Wants vs. needs
- You need to make choices about how to spend your money
- It’s important to shop around and compare prices before you buy
- It can be costly and dangerous to share information online
- Establish an account to begin saving your money
Ages 11-14
- Save at least a dime for every dollar you receive. Motivate by offering a ‘Matching Contribution’
- Be careful entering any information on-line including bank or credit card numbers
- The time value of money – compound interest
- Using a credit card is like taking out a loan (if you don’t pay if off)
Ages 15-18
- As you dream of colleges consider how much each school will cost you and your family
- Avoid using credit cards to buy things you can’t afford to pay for with cash
- Your first paycheck may seem smaller than expected because money is deducted from each check for taxes
- Begin a savings plan for your future – consider a Roth IRA
Ages 18+
- Build a budget detailing your planned monthly spending vs. actual
- Use a credit card ONLY if you can pay off the money owed in FULL each month
- Build up an emergency fund of three months of expenses.
- Invest time understanding investments and building your strategy for your financial future!
Sources, Resources & Excerpts:
Dan Ament is a Financial Advisor with The Ament Group at Morgan Stanley located in Wayzata, MN and may be reached at 952-475-4302 or dan.a.ament@ms.com .
To learn more visit: www.morganstanleyfa.com/amentgroup