HCR Wealth Advisors Gives Advice to Parents Wishing to Teach Children Financial Literacy

The gift of financial literacy is one of the most valuable investments a parent can make in the future of their children. Many parents delay discussing financial issues with their children for fear they will be uninterested. But the sooner a child begins to learn and think about financial matters the more it can positively benefit his or her future. To this end, the registered financial advisory firm, HCR Wealth Advisors has compiled a short list of topics that every parent should be sure to discuss with their children.

Allowances for Doing Chores

Learning that money is earned is a major life lesson for any child. Requiring children to perform chores around the house assures that they will understand that money does not come freely. When a child wants more money, he will begin to make the connection that performing more chores is necessary.

Preach Budgeting

Once an allowance is established, children can now learn the benefits of budgeting their money. This budget can be as simple as a single, handwritten piece of paper containing income and expenses. This will give children a true understanding of how budgeting is done and make them aware of the things they can afford to buy and those which they cannot.

Savings Accounts

Competent banking is a skill that every child must possess in today’s society. Open an account with your child and begin to teach them the process. Children that get used to making bank deposits and using debit cards are likely to grow up to be more financially responsible than their peers that do not get this early training.

Teach Investment Basics

Becoming a knowledgeable investor is something that can greatly benefit children as they grow into adulthood. This lesson can be learned by purchasing for the child a share or two of an inexpensive stock. Parent and child can then monitor the progress of the stock together and discuss the why and when price can fluctuate. Use current news and magazine articles that help to explain the performance of the stock. Need help in financial planning? Go to https://www.brightscope.com/financial-planning/firm/9605/Hcr-Wealth-Advisors/.

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