HCR Wealth Advisors is a registered investment advisory firm that provides financial planning and advisory services to clients. The firm seeks to create and maintain fruitful client relationships, achieved through the firm’s services, education, and trust as well as communication. All these attributes according to Nasdaq, are performed with a policy of upholding security as well as confidentiality towards their clients.
The firm is providing strategies and tips of how guardians and parents can inform, as well as teach, their children in finance. This will not only improve their financial IQ but will also be positive preparation for adulthood.
The first tip is to award them allowances for completing house chores or home duties. This will let them know at an early age that to earn money one needs to work for it instead of expecting it to be given when needed. They will begin to understand that they have to do more chores if they want better allowances. This added work will be reciprocated with more money earned.
The second tip is to enlighten them on how to develop a budget. A simple way of achieving this task is by having them jot down all their expenses, as well-earned income, on a two-sided table list. This strategy will teach them how to properly budget as it can point out clearly whether the stuff they want to buy is a necessity and whether they can afford the product itself.
The third strategy is to start a savings account with the child. This will foster the habit of saving as well as learn how to deposit money and use debit cards. Beginning this process at an early age will be helpful as it will foster accountability.
The fourth tip is to teach the child investment basics. This can be done through buying them a stock of their own choice. This will let them analyze, with the guardian’s assistance, how trends work and start to understand the stock process. Another method is the use of investment simulators so the child can learn without being at risk of losing real money.
Straight from the source: http://members.beverlyhillschamber.com/list/member/hcr-wealth-advisors-52769
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