On today’s episode of The Financial Commute, Chris Galeski welcomes Wealth Advisor Kevin Rex. They discuss the importance of educating children about money and increasing their financial literacy.

Kevin says that many children tend to model their mindset around money after their parents’. Therefore, it is crucial to have constructive conversations about money and set healthy examples for young kids as early as possible. 

For instance, Kevin suggests setting up three jars for your children or using these jars as hypothetical illustrations: money they want to save, spend, and give away. Any time they receive a larger amount of money for a birthday or holiday, ask them to consider how they would like to divide their money. Teach them to compare their options: they could buy a new toy now or save up for an even better toy in the future. 

Finally, Kevin encourages parents to add their children as authorized users to their credit cards to help them build credit from a young age. When they are 18, they may be able to rent an apartment without a cosigner or qualify for a car loan with lower interest. Having a credit card statement to review together may also help children evaluate their habits on a monthly or yearly basis. 


Disclosures: 

This information is presented for educational purposes only and should not be treated as legal advice. Morton Wealth makes no representation that the strategies described are suitable or appropriate for any person. You should consult with your legal professional to thoroughly review all information and consider all ramifications before implementing any transactions and/or strategies. Although the information contained in this report is from sources deemed to be reliable, Morton makes no representation as to the adequacy, accuracy or completeness of such information and it has accepted the information without further verification. No warranty is given as to the accuracy or completeness of such information.