Tips to Teach Your Kids About Credit
1- Manage your credit score- Pay your credit cards off before the close date, not the due date. This makes your card show a lower balance on your credit report.
Pay down debt strategically- snowball debt vs highest balance... and mix it up. having a variety of debt types can help.
2-Teach your kids to use money- Most kids are scared to use money unless it's online. Teach them to use cash, how to write a check, how to use a debit card. Let them "earn their keep" So at our house, we use an allowance, but it's based on performance. This teaches discipline, quality work ethic, gives them the chance to learn to budget and understand the cost of things, When we go on vacation, they earn their spending money and then they can buy their own souvenir. They love that.
3- We need to understand that having a plan matters. So often we make our money decisions in the moment. If we have the perspective of having a plan, and make our decisions within that plan, we make better choices. This is way easier than having a budget. So have a plan!
4- We have all the tools that the wealthy have! Quit waiting until you think you have enough to start working with a planner. An independent advisor who is a Fiduciary will have the tools and resources to help you know which steps are next for you. The reality is we don't really know what we don't know, so get a planner. There is also great peace of mind.
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Ed Kinsey has worked in the financial services industry for over a decade. During this time, he has specialized in helping small business owners, retirees and pre-retirees create and execute comprehensive retirement plans. He finds personal fulfillment in helping individuals and couples nearing retirement understand and prepare for the challenges associated with planning a successful retirement.
As a licensed fiduciary, he is committed to the highest standard of care for his clients. He and his team at 5 Wealth Management are committed to helping their clients achieve their financial goals through a comprehensive planning process that entails risk and fee reduction, tactical planning, and independent product selection of strictly the highest caliber, all custom-designed to meet their clients’ needs.
As a graduate of Brigham Young University’s Marriott School of Business, he has been a featured advisor in Fortune, Businessweek and Money Magazines. He also co-authored the 2015 Amazon Best-Seller The 5 Money Myths, a guide to overcoming common myths that prevent successful retirement plans. These same principals are used in his team’s approach to a customized, successful planning experience that meets each individual’s desired outcome.