It’s never too early to start teaching your kids the basic fundamentals and tools it takes to become a sound financial planner. One dad, who claims that a mentor provided him the necessary monetary skills like: balancing a checkbook, the importance of saving, how to budget, and beyond. Today, the father of two little girls has himself become a financial advisor, so clearly the message stuck, and now it was his turn to pass on the knowledge. But first, the father had to come up with a strategy, and along with the assistance of his little girl, the two was go about executing a sound life insurance plan. I’ll let the father take it away from here…
“To be able to use this strategy, my kids need to understand the following concepts (not in any particular order):
1. How to save money
2. The idea that you can invest and spend the same dollar at the same time
3. How to take out a loan and pay it back
4. How compounding interest works
To start off, I randomly decided we would work on how to take out a loan and pay it back. I figured this concept can easily be built into one of the oldest of American traditions… the good old-fashioned lemonade stand. This also gave me the ability to teach my sweet, energetic, up-for-anything-three-year-old the main concept of loans and obviously, a ton of little lessons on the way. Here is our story…”
Step 1: Making the plan
“As parents we are goofy, silly, and spontaneous, but we try to emphasis the importance of making a plan. We planned out our day and then my daughter helped draw pictures of each step.”
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