Tips for Raising Financially Responsible Kids

Wealth Advisor

In this video, Jamison Smith, a wealth advisor at EWA, shares valuable tips for teaching children financial responsibility. He emphasizes that financial education often falls on parents, as it’s not typically taught in schools. Smith highlights the importance of setting a positive example and instilling good money habits in children from an early age.

The tips provided include giving children an allowance based on earned chores, opening savings or investment accounts, matching their contributions to teach about compounding interest, and discussing college financing and student loans to help kids understand the financial impact of their education choices.

Overall, the video offers practical advice for parents looking to educate their children about money management and financial responsibility. Smith encourages viewers to reach out with specific questions on this topic.



Video Transcript

I am Jamison Smith, a wealth advisor at EWA. In this video, I’m going to give you some helpful tips for teaching your children how to be financially responsible. Financial education is something that’s not really taught in schools.
So teaching kids about money generally falls on the parents. There are unconscious beliefs that form about money that started at a very young age. And you probably don’t even realize it, but your beliefs and how you handle your money now are most likely formed based on what you saw your parents do really early on in childhood.
So really important to set an example as a parent and make sure that your kids see good money habits from day one. So here are some tips to help teach your kids about money. Number one would be give them an allowance, giving your child an allowance that they earn from doing chores or whatever that may be.
Can be one of the best ways for them to learn how to handle money on their own. It’s important for kids to understand money is earned and not given, and an allowance is a great way to teach them this. Important to have a strategy for the allowance.
It can be really beneficial to have them save a portion of it and spend a portion of it. And then this can help them learn the value of paying themselves first. Next tip would be open a savings account or an investment account. One idea would be to match anything that they put into it.
You put it in. This will teach them about compounding interest. And the last tip would be talk to them about college and how student loans work. Most people go to school and take out student loans aimlessly without really understanding how that will impact their financial situation.
Post college, so important to have a strategy around how you’re going to pay for college and talk to your kids about that early on so that they understand the impact that will have after they graduate. So if you have any specific questions about teaching your kids to be financially responsible, feel free to reach out.
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