Wealth Creation for Teens
Anyone interested in wealth creation has most likely noticed the lack of financial education that is available to children in grade school or secondary school. So many young people in the world today do not have a good financial role model to whom they can look for advice and guidance. Someone should be teaching teenagers about wealth management and the importance of wealth creation. It is up to you as a parent to teach you teenager the importance of thinking in the long term, having patience and instilling a sense of frugality into him or her that will lead them to creating the wealth that they will need throughout their lifetime.
Start by discussing the pitfalls of debt with your teen son or daughter. Do not be afraid to use loved ones or yourself as an example, for better or worse. Explain the way credit works to your child, tell them how it affects buying power and how quickly the fees can add up if you do not manage your finances well.
Teach your teenager the difference between healthy and unhealthy debt. Let them in on the minimum monthly payment scam used by credit card companies to keep people in debt for many years. The majority of teenagers in the world today simply do not realize just how quickly you can fall into debt. When your son or daughter reaches college age, they will be bombarded by enticing offers from several credit card companies. Teach them everything they need to know to avoid such traps.
The next thing you need to talk about with you teen is investing. Begin small with bonds, interest-bearing bank accounts as well as certificates of deposit. Teach you teen how to get set up with a money-marketing checking account as well as a few fixed-term investments. The yields from these initial investments do not have to be high, they just need to set the stage for your teen to learn how real-life investing works.
Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2010
Tags: Investing, pitfalls of debt, Wealth Creation