Cementing the debt, savings and investing relationship
Using credit cards
A credit card is a great tool to help build both a credit history and a healthy financial life when used responsibly. Talk to your kids about what types of purchases they may want to pay for with their credit cards and which are best paid for in cash. Emphasize to them to spend only what they can pay off each month and encourage them to pay their monthly bill on time. For tips on how to manage credit, read this article.
Educate your kids about investing early and regularly. This way, they’ll have a strong head start to achieving their long-term goals, including retirement. As the old saying goes, “it’s time in the market, not timing the market that pays off.” Share these resources with your kids to start the investment conversation:
Today, younger investors aren’t just looking to invest in companies with solid returns. They want to invest in companies that align with their social, environmental and governance ideals. That’s responsible investing. If your children are interested in responsible investing, share this video with them.
You know your kids best. With adult children, money conversations can include everything from savings and debt to investing. Preparing them now will lead to financial success later.