When dads say they don’t feel a third of Gen Z are ready to manage their finances, recent trends indicate: MassMutual Survey Reportedly, they plan to challenge Bits to give some tips. Heading into Father’s Day, we asked some financial experts for the best financial advice to give their own kids.
Here are their 6 key tips:
1. Start learning about money at a young age
Jim Degaetano has taken matters into his own hands when it comes to teaching kids about money.
DeGaetano, founder and CEO of Diamond Wealth Advisors in Carlisle, Pennsylvania, used “Larry the Whisperer” to teach his then-four and six-year-olds about saving and spending. Wrote a children’s book “Bunnies Save Money”.
“Basically, this cute bunny named Larry gets paid 10 carrots every day,” Degaetano said of his book. Available on Amazon. “Larry will always remember his father telling him, ‘Every time you work and get paid, save two carrots for the next day.'”
“Keeping the conversation about money going as your child grows is just as important as starting at an early age,” said Ashley Fawkes, managing partner of Inspired Wealth Solutions in Hoover, Alabama. said.[Young people] They have the ability to determine their entire financial future by making good decisions today, rather than having their financial future dictated by bad financial decisions today,” he said. rice field.
Fawkes plans to pass this advice on to his 3-year-old son. “I want to teach him the lessons I learned from my wrong decisions,” he said.
Paul Lapiana, head of brands, products and affiliated distribution at MassMutual in Park City, said one way to teach kids the value of a dollar is to give them pocket money to do household chores. He said it starts at an early age. Utah. Then he will be ready to save, invest and spend wisely in adulthood, he said.
The discipline of working, understanding the value of money and saving is very important for children, he says. “Part of it will make them realize that it’s already in their DNA when they graduate from college, when they graduate from high school, when they start their first job. .”
2. Realize that time is your most valuable asset
“Once upon a time, someone said to me, [that] The eighth wonder of the world is how money compounds over time,” Lapiana said. “So all you have to do is start saving as soon as possible and reach your goals and objectives over time.”
Brandon Gibson, wealth manager at Gibson Wealth Management in Dallas, Texas, agrees. Any advice for my 12 year old daughter? “Start early and be proactive.”
He added, “If she can save 10% or 15% right out of college and invest 100% in a stock index fund, that’s what it takes to retire by mid-to-late 50s. I have little doubt that all will be obtained.”
3. Invest in yourself
Blake Street has some very simple advice. Advisor and founding partner of Warren Street Wealth Advisors in Tustin, Calif. “Invest in yourself”.
When you’re young, saving money isn’t as important as building relationships or acquiring knowledge and skills, he says. “Find your strengths and passions in his career and commit to them,” he said.
And that doesn’t necessarily mean seeking further education, says Nilsin Partners, senior advisor and managing director in Cottonwood Heights, Utah, and father of two children, ages 8 and 11. Also, Devin Pope points out. An opportunity to learn new skills and new experiences. Breaking bad habits, getting your personal and professional life in order, setting career and physical and mental health goals can all be part of this investment.
“You never know what you like unless you try it. [something] At least once,” said the Pope.
4. Start with cushions for financial flexibility
Sean M. Pearson, now a financial advisor and vice president at Ameriprise Financial Services in Conshohocken, Pennsylvania, got his first job and spent his evenings at home while attending college. lived there and got some advice from his own father.
Ms Pearson said her father knew that the expenses associated with living alone, such as paying rent and buying furniture, would put pressure on her son’s finances, so he gave her the option to continue living in the house.
This allowed Pearson to save money and get a cushion to protect himself in an emergency.
As young people become more independent, he said, many start out with student loans and other types of debt, making it difficult to build a cash cushion.
“The financial journey is a marathon, not a sprint,” said Pearson, who has a 14-year-old son and an 11-year-old daughter. “It still gives us a head start on the journey.”
Like Pearson, even if young people don’t have the option of living at home after high school, they can still find ways to establish a financial cushion, whether by cutting back on spending or saving more monthly income. You will have even more financial flexibility in the future.
5. Contribute to your 401(k) regularly
Many fathers stress the importance of donating money to a retirement fund, whether it’s an IRA or an employer-sponsored 401(k) or Roth 401(k).
Ian Weinberg, founder and CEO of Family Wealth & Pension Management in Woodbury, N.Y., gave his 22-year-old son, who had just started his first job, a 10% paycheck to his company’s Roth 401(k). I advised you to donate.
“I don’t believe Mr. Ross has a second chance, especially if he’s in the lower tax bracket to begin with. [It’s a] It’s a powerful tool for long-term savings,” Weinberg said.
Weinberg also encouraged his son to contribute monthly to other investments through mutual funds and buying fractional shares. Mutual funds and fractional share purchases allow investors to invest in stocks based on their amount rather than buying all the shares of a company.
6. Prioritize happiness
Craig House, father of two teenage daughters, has some final advice.
“Always spend your money on things that make you happy, not on things that make other people and friends happy,” says House, CEO and managing partner of CMH Advisors in Dallas, Texas. People are less likely to remember what they did or didn’t spend money on if it didn’t make sense to them, he says.
Chris Cartaviano, chief program officer for the Economic Education Council, a nonprofit that provides financial education to students in kindergarten through high school, agrees. “Good financial management doesn’t always mean making the most realistic choices at the expense of creating a memorable experience,” says Cartaviano.
“Save enough money to have the opportunity to celebrate with your loved ones beyond Father’s Day,” Cartaviano added.