FinanceSpectrum.com Doles out Financial Advice for Parents of Teens
Boston, MA (PRWEB) July 01, 2013 -- FinanceSpectrum.com financial advice website today released its recommendations for parents about how to ease their children into the world of finance and credit. Their article came after a recent Boston.com piece about teens and money management struck a personal chord with FinanceSpectrum.com’s Senior staff writer, and the financial advice column decided to add to Boston.com’s list of recommendations.
Alex Veiga of Boston.com wrote an article published June 26th outlining several things that parents can do with their teenaged kids to help instill money management skills in them. Veiga’s tips included opening up a teen retirement account, teaching kids the basics from an early age, sharing the details of the household finances with them, and turning the act of buying a car into a financial lesson.
Veiga describes how parents could turn buying a car for their teenager into a good opportunity for a money management lesson. He recommends not to simply hand the keys to one’s child, but rather to get him or her involved in doing the financial research that goes into the purchase. Veiga suggested having teens do homework such as comparing different models, prices, gas mileage, and projected maintenance costs. Veiga did not advise having teens call around to see how much a texting while driving ticket would be, what the standard procedure is for if you are in an accident, or to look into affordable life insurance however, he did advise having teens call car insurers to find the best cost.
FinanceSpectrum.com’s Senior staff writer was particularly moved by this article. FinanceSpectrum.com is quoted as saying, “In my household growing up, money was something of a taboo topic. I never knew how much my parents made or how much our mortgage or utilities cost. I never got an allowance, or was taught how to properly save and invest money. It wasn’t even until I was in college that I learned what the terms ‘APR,’ ‘credit history,’ and ‘credit score’ were. This article struck a chord with me because it is so incredibly important that parents start talking to their kids early on about finances, rather than leaving them to learn the hard way—by making mistakes, or sometimes worse, learning from their peers who might not have accurate information or be practicing bad money management. It’s important to give kids the tools and knowledge they need before they leave home and enter the real world.”
FinanceSpectrum.com offered its own advice to readers who have kids about how to get them talking about, thinking about, and educated about finances. FinanceSpectrum.com advised first and foremost to introduce kids to financial words and phrases, terms like ‘credit,’ ‘APR,’ ‘savings,’ ‘interest,’ and ‘credit report.’ FinanceSpectrum.com also believes that being transparent with kids about money challenges that parents have had in the past can be good learning experiences for the kids, and encouraged parents to share financial mishaps they might have previously had with kids.
FinanceSpectrum.com also encouraged allowances with stipulations, such as being required to put a portion in savings or donate some to a charity. The financial advice column believes that it is a wonderful life lesson for kids and teenagers to have a good grasp on what it feels like to save up for something with their own money.
About FinanceSpectrum.com
FinanceSpectrum.com is an online finance and economic column for American consumers in the middle of life who are seeking tips, knowledge, and guidance on an abundance of topics. FinanceSpectrum.com writes articles about everything from budgeting, to saving, to investing, to sprucing up one’s credit. They enjoy being a resource for consumers who are looking to better their financial situation.
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