Saturday, July 3, 2010

School's Out...time for a financial lesson

I have no complaints about my childhood. I grew up in a large family, we had great holidays, and summer vacations. My parents supported me and were always there for me. Cheering for me on the slide lines as I played sports, clapping for me at my high school graduation and helping me finance my College career. Looking back on it now it was great, but if there was one thing I could change I would have had my parents give me some financial advice /education.

I mean they showed me around a check book and answered any questions for me, but never really sat me down and gave me any financial advice. Having a pile of unsecured debt now I wish I had a better head start. No worries for me I'm doing my part now to dig out of my situation. My plan for my children is different it  will be a series of sit downs to explain bills, credit cards, savings and checking accounts.

Having 2 children getting ready to enter middle school and wanting their first cell phones, the cell phone bill is a great place to start. Letting them understand the cost of the phone usage, texting, etc. The date / deadline that they money is due, the taxes and additional charges they come with owning a phone.  Cell phones / texting are common place for young adults and I'm sure that most not paying for them, but they should understand the cost / value.

I think the next lesson can easily be the Cable / Internet bill. Something my kids use frequently. Again breaking down our monthly bill so they understand the cost and the responsibility of paying it on time. As well of the consequences of not paying on time.

As I look over my monthly budget I see a number of lessons to come:

Income - breaking down the pay stub and all the taxes and deductions.
The electric bill - they can finally understand why I'm always yelling to turn off the lights.
Food - understand the cost of waffles
Credit cards - interest and the pain in the stomach the cause

Some many lesson to teach, so little time.

I'm wondering how others feel. Did your parents ever sit you down to talk money? Do you have a plan for you kids?

1 comment:

  1. Sounds like a plan. I need to review with my kids.