Debt seems to be a parasite we cannot shake; in fact, we often nurture it and make it flourish. We transfer this bad habit to our children, where instant gratification is the norm and where debt overshadows saving.
Don’t let your children inherit your bad savings habits. Break the cycle and teach them good savings habits so that by the time they become contributing adults, they will not be riddled with debt that consumes their disposable income but instead have a decent savings stash to help with further education or pay off student debt.
- Teach them that education comes first and will open doors for their future.
- Start a savings plan when your children are young and get them involved in contributing towards it to see the value of compound interest.
- Make them save a portion of their allowance to learn how to set savings goals.
- Teach them that credit cards and loans are for emergencies, not everyday life.
Teach your children to be financially independent and secure from a young age. This could mean investing in an education savings plan or joining a savings app (Catalyst) to encourage saving. This will ensure that they start off their adult career debt free and secure with savings.
If you want to give your children the most support in an increasingly competitive financial landscape, Speak with a consultant about opening a savings/investment plan for your children.
Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above