Some of the money “basics” are confusing to those just starting their financial future. Financial lessons are learned at many different times in life, including youth.
Here is a humorous twist to ten lessons that make for a good conversation starting point with your young person.
1. Money doesn’t grow on trees. Learn to earn. It develops respect.
2. Saving for the future starts immediately, not when you grow up. Saving early builds a strong habit and a strong future.
3. Checking accounts do have limits. You can’t keep writing checks just because you have them.
4. Interest rates are at about a 45-year low. Review your debt to insure proper interest rates are in place. Early payoffs are not always recommended in the current rate environment.
5. Credit cards should not be used as long term loans. There are better ways to finance. If you don’t have a good payment plan, one maybe you should re-evaluate the purchase.
6. The telephone banking line doesn’t have ESP. The balance information given has no way to recognize checks written but not presented for payment.
7. Online banking operates 24/7 so you can bank anytime. No more sleepless nights worrying about your banking.
8. The vault has no mercy. Don’t put your item in your safe deposit box if you need it after business hours. The vault won’t open no matter what your emergency.
9. Auto payments don’t originate from the ignition of your car. It’s easy to get auto-pay started and guarantees on-time arrival of your payment.
10. Generally, no one under 18 can own a bank account alone. It doesn’t have to be a parent, just someone 18 or older. Choices include joint, custodial, uniform gift to minors, or
Money matters are complicated. These tips are a healthy start to a strong financial future, but they are just a beginning. Meeting with a banker to understand your personal situation is always a good idea.