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LIFE & LEARNING

LESSONS IN

FINANCIAL LITERACY JOHN STELZRIEDE Senior Vice President Alpine Bank - Glenwood Springs Member FDIC

Financial literacy is an essential life skill. It’s not always in school curriculums, so it’s important to have discussions about money early and often with your kids. To help your children make sense of their money, it’s helpful to categorize earning, budgeting, sharing, saving and investing. Fortunately here in the Roaring Fork Valley, we have Junior Achievement and YouthEntity, both of which help teach personal finance and help prepare students for their future. As a parent raising kids in an instant gratification world, remember the importance of consistency and discipline in following this advice. Your child will become more financially independent, which is good for them as well as you. Start now.

Dave Ramsey YouthEntit y spends a significant

amount of time teaching the 10-10-10-70 Rule. It looks like this:

IS A WELL-KNOWN EDUCATOR AND ADVISOR ON FINANCIAL LITERACY. NOW HIS DAUGHTER, RACHEL CRUZE, FOLLOWS IN HIS FOOTSTEPS WITH A FRESH MESSAGE FOR FELLOW MILLENNIALS.

THEIR ADVICE? FOR ELEMENTARY-AGE KIDS:

70 10 10 10

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SPEND THE FIRST 70 PERCENT OF YOUR MONEY ON WHAT YOU NEED.

1. Have them save in a clear jar, where the money is visible, versus a piggy bank. 2. Set an example yourself. Use credit sparingly for meals out and groceries. 3. Show them a tangible example of what things cost. For example, using the cash from the saving jar to purchase a toy.

SAVE TEN PERCENT FOR UNFORESEEN AND EMERGENCY PURPOSES.

AS THEY GET A LITTLE OLDER:

INVEST TEN PERCENT FOR YOUR FUTURE. GIVE TEN PERCENT OF YOUR EARNINGS TO CHARITIES, NONPROFITS AND THOSE LESS FORTUNATE.

4. Help them understand the different between “wants” versus “needs”. 5. Give commissions, not allowances, teaching them to earn through their practical chores. 6. Teach about giving. Let them choose a nonprofit, charity or a person who needs help.

AND BY THE TEENAGE YEARS:

7. Encourage them to open a bank account to take money management to the next level. Consider both savings and checking accounts. 8. Actively help them find a job. 9. At 18, kids start to receive credit card solicitations. Talk with them about the peril of debt.

Profile for Mountain Parent Magazine

Mountain Parent Magazine April 2018  

This latest issue has useful and fun information about regional summer camps and activities for kids, as well as relevant articles on health...

Mountain Parent Magazine April 2018  

This latest issue has useful and fun information about regional summer camps and activities for kids, as well as relevant articles on health...

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