HCR Wealth Advisors, a registered investment advisory firm, has been providing financial advice and wealth management services for thirty years and counting. HCR Wealth offers financial advisory services to their clients so that they can make informed business and financial decisions.
To further educate their clients, HCR Wealth Advisors released some tips on how to educate children to prepare them for all the financial decisions they will have to make as adults. Children are highly impressionable at a young age, so that is the best time to instill important ideas that will follow them into their future independence. With these tips, it is hoped that your children will grow up to become better money managers and help them stay out of debt.
HCR Wealth Advisors believes that the real difference between the rich and the poor are their financial decision-making and financial management skills. When you develop these skills early, the better one’s chances to prepare for the future and meet their financial goals. HCR Wealth Advisors hopes to protect children from getting into debt with the following tips, found below.
Educate Your Children About Investment
It is important to teach children the importance of buying bonds and stock at an early age so that their money can grow along with them. It may be a good decision to buy them shares in a company of their choice and teach them why the value goes up or comes down.
Open an Account with Them
HCR Wealth Advisors also advises that it would be a good idea to open a savings account with children to help them cultivate the idea of saving, no matter how little they have. Even if they can save something as small as $5 every month, it will amount to $600 in 10 years without interest.
Teach Your Children the Importance of Creating a Budget
A lot of people are in debt now because they are addicted to living above their means. The best way to prevent this is by creating a budget and sticking to it. HCR Wealth Advisors also believes that children should be taught about creating a budget because they might grow up to face scarce financial resources. Showing them how to properly budget what they have will positively impact how they view the amount of money they have.
Teach Them How to Work to Earn
At this early stage, let them know that free money does not actually exist. By paying them for doing some household chores, it instills the idea that they need to work in order to earn money. This idea also makes them better spenders.
By virtue of their experience in the financial industry, HCR Wealth Advisors believes that good financial education is the best legacy parents can give their children, so the sooner they begin to understand finances, the better off they will be in the future. For more tips, check them out on facebook and twitter.
HCR Wealth Advisors’ Sandwich Generation Retirement Planning: https://www.dailyforexreport.com/hcr-wealth-advisors-can-help-protect-sandwich-generation/
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