Financial Tips for Your Kids: The Gift That Keeps on Giving!

[Tampa, Fl] October 15, 2012—Just as the Native Americans taught the Pilgrims to plant seeds and grow crops, the greatest gift we have to offer America’s youth is knowledge.  And just as these farm skills provided food and currency for the Pilgrims, it’s up to us to share today’s equivalent with our young up-and-comers—financial education.

Michael Minter of Mintco Financial believes that instilling a strong foundation of financial education at an early age is imperative for fiscal success later in life.

“Especially in this stagnant economy, money management is key.”

Abstract and ambiguous, the “value of a dollar” is a difficult concept for children and students to grasp. Michael asks, “Can your kids guess the price tag for items such as movie tickets, HD videogames or trendy clothes? More importantly, do they understand what this price tag entails?”

Stemming from his experiences with professional athletes, musicians and other high income clients, Michael feels for those who lack financial education. “It’s so sad to see these younger people having to claim bankruptcy due to poor money management. They’re completely disconnected from how much their lavish lifestyle costs. Something as simple as a household budget is a totally foreign idea to them.”

However, with very few financial obligations, young people may not be vying to advance their financial skills. In order to overcome the infamous teenage eye rolls, Minter offers the following tips:

1. Create a “Napkin on the Fridge” with your child. This approachable version of the household budget is easy for anyone to understand. First, draw a line down the center of a napkin. Label one side “Needs” and the other “Wants.” Ask your child to list their needs and wants and place them in the appropriate column. Next, calculate the cost of each item in the “Need” column to form the basis of your budget. From there, you and child will be able to determine which “Wants” fit into their budget as well.

2. Open a savings account together. Encourage them to deposit on a regular basis. Teach them how to put money away for a “rainy day” or how to go about
purchasing larger ticket items they don’t have all of the funds for right away.
Kids today are used to instant gratification, so lessons like these will help them dodge issues with debt down the road.

3. How much does having fun cost? Develop a plan to help your child earn their night out on the town. Between all the chores, errands, babysitting and dog-walking on your “Honey-Do List,” you’ll be able to delegate a few easy tasks to cover the cost of your their weekend activities.

4. Let your child manage their allowance. With proper guidance, children can
learn responsibility and value through personal experience. See what they do with their weekly salary and talk to them about their spending (and saving!) habits.

5. Put price into perspective. Your child may not be able to grasp the cost of everyday necessities like food, gas and utilities. Bring your child on your next grocery run and let them pay for a few items at the check-out counter. This exercise will help them see how far (or not so far) money really goes.

“Outside of sports, my calling at a young age was my fascination for how money worked,” Minter states. A father himself, Minter’s already looking forward to creating a “Napkin on the Fridge” with his son. “These tips are principal guidelines for all kids to learn. They’re easy, fun and can be quite rewarding when applied!”

For more financial education tips, check out Minter's quick and easy read I-Plan now available online at Amazon, Barnes and Noble or via Kindle or Nook.

About Mintco Financial
Mintco Financial is a boutique wealth management firm specializing in retirement and estate planning. We create customized strategies to assist our clients in managing their nest egg, protect their family’s lifestyle and reach their financial goals. Via our holistic approach, we’re able to continuously evolve our economic recommendations and stay relevant to our clients as they grow. Always available and attentive, Mintco Financial constantly strives to progress our practices to better serve our clients and correspond with the current state of the economy. To learn more about Mintco Financial, visit www.mintcofinancial.com.