Raising Debt-Free, Money-Smart Kids

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Your Checklist to Raising Debt-Free, Money-Smart Kids

According to The U.S. Department of Agriculture, raising a child to age 18 costs more than $230,000 Living on a Budget: – List your monthly income – List all of your monthly expenses (rent, mortgage, utilities, car payments, insurance payments, etc.) and subtract from your income – The remaining is what you have left for variable expenses (groceries, clothing, savings, entertainment, etc.) – If money is tight, constantly be looking for ways to cut expenses or add income Learning About Finances: – Set financial goals for your kids and have them work to achieve those goals – Have young ones help with chores and team them to manage allowance money – Encourage opportunities to make extra money (babysitting, dog walking, part-time jobs, etc.) – Have them pay for some of their expenditures Avoiding Spending Temptations: – Address commercials, marketing ploys, and other pressures to spend – Unsubscribe from promotional content – Limit TV watching Distinguish Wants from Needs – Limit dining out (costs an average of $9 more per meal than eating at home) – Reduce expenditure on clothing (smaller wardrobe, off-brand clothing, buying on sale) – Stress the importance of appreciating what you already have Saving Over Borrowing: – Emphasize the long-term effects of borrowing – Avoid debt by not having to borrow in the first place – Create an emergency fund – Evaluate the pros and cons of a credit card