Today, more teens are failing to differentiate between need and want, thanks to all the marketing tactics which leading them to impulsive buying and they are blowing their cash on things which they don’t know if they really need. What really this new generation wants to buy today is astronomically process clothes and high-end gadgets and they really need to keep it up to date with latest fashion trend. Companies are in fact devising strategies to target them as the numbers of these consumers are increasing day by day.
We parents got a job in hand to give few lessons to our kids on responsible consumerism and investing their money on what really they need and not on everything they may want. We will introduce you to few ways on how to let your kids know the importance of their hard earned money.
Get your kids know the importance of money and how one earns it. When we get something easily we never give importance to it, so let them know how difficult it is to earn some themself. Start involving them in money management through some kind of work which they can do, it can be even starting a neighborhood grocery shop or anything in which they may be interested. It will be lesson for them how much we need to sweat to earn few cash.
Next thing you may need to focus is the credit history. This would be the main thing for you to focus as you would have credit accounts in neighborhood department store accounts, a bunch of credit cards, bank accounts and other financial institution loans. Other than this you would probably had mortgages, car loans, home equity loans and other transactions involving credit. Bureau calls these accounts sometimes as trade lines; it is not surprising because these accounts are still owned by you.History of these accounts usually start with when you opened the account then tell the type or kind of credit (installment, car loan, personal loan, etc.) and whether it is owned by individual or there are joint account holders for the same. The total amount of the loan with your high credit limit or if it is a credit card, your highest balance follows. Then follows the status of these loans, how much you have paid and how regular you are in your payments are payments are like fixed or minimum monthly payments.
Importance of savings is next thing they should be taught and also how do they go about this. You need to be an example on this front show them how you did you go about this and how your money grew over a period of time as a result of your habit of saving. They will be really show interest if you show them the regular interest piling up in your account and how the risk factor works here in comparison to investing money in stock market. If your kid in college, this is the right time for you to inbuilt this habit in them. You can encourage them to open a recurring account with the college fund. Amount can be as minimum as possible, earliest we do this the less damage it may do to their life.
Let them know how to manage their cash flow and how it can help them to give the visibility on their spending and earnings. This will help them to make a budget for themselves and this is the best thing to do to keep track of the current and future expenses. We have never seen the future and we never know what may happen, so it is best to be ready for it.
This will teach them not only how to be a responsible adult and a wise consumer but also it will save you from the mental frustration coming out of huge debts. If you are successful in achieving this you only gain from this and lose nothing.
We parents got a job in hand to give few lessons to our kids on responsible consumerism and investing their money on what really they need and not on everything they may want. We will introduce you to few ways on how to let your kids know the importance of their hard earned money.
Get your kids know the importance of money and how one earns it. When we get something easily we never give importance to it, so let them know how difficult it is to earn some themself. Start involving them in money management through some kind of work which they can do, it can be even starting a neighborhood grocery shop or anything in which they may be interested. It will be lesson for them how much we need to sweat to earn few cash.
Next thing you may need to focus is the credit history. This would be the main thing for you to focus as you would have credit accounts in neighborhood department store accounts, a bunch of credit cards, bank accounts and other financial institution loans. Other than this you would probably had mortgages, car loans, home equity loans and other transactions involving credit. Bureau calls these accounts sometimes as trade lines; it is not surprising because these accounts are still owned by you.History of these accounts usually start with when you opened the account then tell the type or kind of credit (installment, car loan, personal loan, etc.) and whether it is owned by individual or there are joint account holders for the same. The total amount of the loan with your high credit limit or if it is a credit card, your highest balance follows. Then follows the status of these loans, how much you have paid and how regular you are in your payments are payments are like fixed or minimum monthly payments.
Importance of savings is next thing they should be taught and also how do they go about this. You need to be an example on this front show them how you did you go about this and how your money grew over a period of time as a result of your habit of saving. They will be really show interest if you show them the regular interest piling up in your account and how the risk factor works here in comparison to investing money in stock market. If your kid in college, this is the right time for you to inbuilt this habit in them. You can encourage them to open a recurring account with the college fund. Amount can be as minimum as possible, earliest we do this the less damage it may do to their life.
Let them know how to manage their cash flow and how it can help them to give the visibility on their spending and earnings. This will help them to make a budget for themselves and this is the best thing to do to keep track of the current and future expenses. We have never seen the future and we never know what may happen, so it is best to be ready for it.
This will teach them not only how to be a responsible adult and a wise consumer but also it will save you from the mental frustration coming out of huge debts. If you are successful in achieving this you only gain from this and lose nothing.
1 comment:
Hi Ajay, couldn't agree more!
As said, generation 'Y' is becoming more incapable of differentiating Needs & Wants, happiness & pleasure, intelligence & crookedness and LIVING & EXISTING!
I asked my friend 5 years ago, what will make you happy? He answered, an bike, Air Conditioned room and some other stuff.
Recently, I asked him if he is happy? (now he has a bike, A/C and most of the other stuff he mentioned). He answered, NO!
May be he never will, nor of many of this generation will! Buying a Bike or A/C or Car or any other stuff will give 'pleasure'. But certainly not happiness!
Sadly, not many of my generation will find happiness! Unless, they realize this!
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