When you hear the phrase “Financial Advice”, you would generally associate it with working adults. However, it doesn’t always have to apply to grown-ups. Children can get financial advice and can quite easily benefit from it as well.
As long as your child is living under your roof, you can teach them to be successful by allowing them to create wealth on their own. In most cultures, kids are expected to leave the house as soon as they turn 18, 21, or 25 years old. This tradition usually sets the children up to fail because they have no experience and don’t know much about responsibilities.
When you allow your child to stay under your roof and implement your financial advice, you are putting them in a position to create wealth easily. And one of the best and simplest pieces of advice you can give your child is to SAVE MORE THAN THEY SPEND. Sounds simple, right? That’s because it is but it is also outstandingly effective.
Think of it like this.
If your child has their first serious job and is earning $2,000 a month and they only spend $800, they have a surplus of $1,200 which is carried forward to the next month. At the end of the year, they would have earned $24,000 and saved $14,400 on that. If that isn’t incentive enough to follow this advice, I don’t know what is. When you teach your child to save more than they spend, they will never go broke because they are constantly creating an additional month to live with every paycheck.
When your child learns how to save more than they spend on a routine basis, they learn how to budget their lives based on their expenditure. If they don’t get this advice early on, and then go out into the real world, they don’t know how to budget their lives efficiently. Even as adults, when we leave the comfort of our parent’s homes, we can’t save enough because we aren’t making enough. If we apply this principle to our adult lives as well, we can save a lot more by simply spending 49% or less every month. Whether it’s a new car or a house, by spending less, we can ultimately save more.
The financial advice you give your children today will set them up for success quicker than they can find it on their own. And once they are familiar with saving more than they spend, and they learn about investing, they will be in a far more stable place to make the right choices and have their money working for them. So, give your child sound financial advice and get them to SAVE MORE THAN THEY SPEND.