5 Pieces of Advice to Tell Your Child About Money- Part 4

5 Pieces of Advice to Tell Your Child About Money is a series that will run every Tuesday for the next few weeks where some of the top personal finance bloggers share their thoughts on this topic. At the end of the series I will post my own 5 pieces of advice. The entire series can be found under Money Tips.

For those of you just tuning in, here is the background to this topic: One of the things that I am really passionate about is setting a good example for the next generation. It seems that so many kids these days have no idea about personal finance and have not been taught the skills on how to manage money for the future. Many of them don’t have to work hard for what they have and so they haven’t developed an appreciation and respect for money earned.

Last week  Tim at Canadian Dream: Free at 45 shared his thoughts on this matter. This week I asked Frugal Trader at Million Dollar Journey his opinion. Here is what he had to say:

1. Get an education, but focus on a topic that really interests you then get really good at it.  Find ways to use that interest and passion to add value to society.  Whether it’s through a career path, or entrepreneurship, be the best at what you do, and the financial rewards will follow.

2. The only way to build wealth is to make more than you spend.  Living below your means is the foundation of personal finance.

3. Treat credit wisely.   It’s ok to obtain a controlled amount of debt for your education or your first house.  But keeping a credit card balance or other high interest consumer debt should be avoided at all costs.

4. The earlier you start investing, the bigger advantage you have due to significant factor of time.  Start learning about investing and the power of compound interest.

5. Set big goals, write them down in a place where you can see them often, and go for it!

Thank you Frugal Trader for participating and for your words or wisdom!

Stay tuned next week where you will hear from Me and what I have to say about this.


Comments

5 Pieces of Advice to Tell Your Child About Money- Part 4 — 3 Comments

  1. I like the part about getting an education in something you love. You may not end up working in that field, most don’t, but at least you’re giving yourself a chance to learn about a favorite topic and you might find a career in it.zx

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