Budgeting: Master budgeting by planning for both regular expenses and savings.
- Task: Help your child create a detailed monthly budget that includes income, expenses, savings, and investments. Review it together regularly to track progress and make adjustments.
Saving: Set and achieve long-term saving goals.
- Task: Encourage your child to set a long-term savings goal, such as saving for college or a big purchase. Help them create a plan and timeline to achieve it.
Debt: Understand the nuances of good debt versus bad debt.
- Task: Teach your child about the different types of debt and their implications. Use real-life examples to explain how good debt, like student loans, can be beneficial, while bad debt, like high-interest credit cards, should be avoided.
Credit: Have a basic understanding of credit scores and their importance.
- Task: Explain how credit scores are calculated and why they matter. If appropriate, consider helping your child get a starter credit card to build credit responsibly.
Investing: Begin learning about and participating in investing.
- Task: Introduce your child to basic investment concepts, such as stocks, bonds, and mutual funds. Consider setting up a small investment account for them to manage with your guidance.
