ERSTE MUTTERBANK, PA (KDKA) – Among the many lessons learned from the pandemic is the lack of a guarantee that a paycheck will always be present. With so many young people hitting the job market after college or on their summer vacation, financial experts say now is the time to address critical money issues.
It’s not an easy conversation, but Tally’s Certified Financial Planner and financial expert says you start early: “Your children are never too young to learn about financial responsibility. So that’s all that works for your family, but the younger the better. “
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Rebel says classes should start and accelerate from the first allowance in the teenage years.
“I think that’s around 16 because at this age most children often have their first job, they often have a driver’s license that allows them not only to get that job but also to take responsibility for something quite expensive “Maybe if they have a job, they want to get in the car, the insurance company that can open a dialogue to develop that adult financial mentality for children.”
As high school graduation approaches, Rebel says, “It gets urgent when you go to college and graduate because you want them to have an exit strategy to be financially dependent on you.”
While the lessons have to be adapted to the personality of the child, take advantage of the lessons.
“For example, you have to go through your first paycheck and where all the money goes because you know what to tell them and they’ve heard you grumble about taxes, but it’s when they see it for yourself. It is real.”
During the pandemic, the problem of boomerang kids coming back to be supported by their parents has increased dramatically. Rebel says it is difficult because emotions are involved, but children need to understand, “Mom and Dad have limited resources and it is important that your children understand that. One mistake we often make as parents is that they always keep us there for them as strong. We don’t want them to see the weaknesses. “
But it is in everyone’s interest that children understand that parents are not an unlimited ATM.
“Well, it’s so hard, but it’s important for us as parents to show them a little more about our finances again when it’s appropriate. Every child is different, but they need to know a little more about what’s wrong with us, if at all, just to protect our own finances. “
While Rebel says that an adult child asking for help is understandable, there must be limits here, too. “Is it the first time that they really don’t have the money and this will have very serious long-term consequences, we are human beings, we love our children, we want to help them.”
But after the first time, she says if you can do it, consider loaning the help.
“It can be supportive and loving and all that, it has to be sustainable and it has to be firm, and you have to really set limits at a certain point because it depends on your life and your life.”
She says just be very honest and tell them, “You can do everything by yourself now. We are here for you. We love you, but now it is time for you to part with us financially. “
Nothing is easy here either, but Rebel says the sooner you start your finance class, the easier it will be in the long run. Children will learn that money doesn’t grow on trees or magically jump out of an ATM at any time, and guard against the unexpected.