Teaching Teens to be Financially Responsible? Investing?
My teen girls just opened both checking and savings accounts yesterday. Both girls have saved up quite a bit of money while each working multiple jobs for the last couple of years. My almost 14 year old already has her $1,000 in savings which I've told her not to touch. Neither has their checking linked to their savings and they both have their checking accounts set so that payment will be denied rather than overdrawing their accounts.
I've read Dave Ramsey's Total Money Makeover but I don't think that at almost 14, my younger daughter would have the attention span to read through the entire book yet - maybe my almost 17 year old...
Is there a Dave Ramsey book that you think would be helpful for their ages?
What have you told your teens about handling money responsibly?
So far, I've told them never to acquire debt, never to have credit cards, and never to buy something that they don't have the cash in hand to buy. I've talked about having an emergency fund saved up and what it is and is not for.
While they're young, I'm hoping that they'll start building their emergency funds/nest eggs NOW so that they can go into adulthood already having completed this step.
We've also discussed ways to pay for college so that they don't take out student loans as well as setting aside money to buy a (used) car in the future, if necessary.
I have the newer (2013) edition of TMMO on hold at the library because I think I read only the 2003 (?) edition and I assume the later edition would have different investing suggestions.
Where do YOU invest money? Where do you invest money for your children? After they have their "emergency funds" in their savings accounts, I'd like for them to invest money and to have their money eventually work for them.
Any other thoughts?
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