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Give your child three nuggets of financial advice

May 26, 2013 by: jamesr

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May 26, 2013 by jamesr
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1418827_coinsFinancial education has become just as important as the traditional disciplines of education early on in life. Martin Lewis for The Telegraph says that he would take enough care to pass on three pearls of financial advice to his daughter.

  1. Sellers are not acting unethically when they tempt you to buy but the final decision rests with you and it has to be a prudent one.
  2. Look for the Opportunity Cost while spending money. Spending on one thing censors you from spending on another thing. Thus you must know where best to spend your hard earned or dedicatedly saved money. Also, it is your choice whether you want to spend at every single opportunity or save for a big haul in future.
  3. You have to straddle on many grey fences. There are no clear answers to many financial questions. There will be times you will feel that A is just as fine as B and one financial viewpoint is just as good as a diametrically opposite viewpoint. This is why children should be taught the skills of financial decision-making from a very early age.

You can read the full article here.

What is your favourite advice to prepare your child to manage their future finances?

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