13th August 2019
Be open about money
Don’t hide important financial issues. Talk about incomings and outgoings, how we manage money and the importance of keeping on top of bills, while still saving for fun things like holidays. Encourage young people to always talk about money worries at any age.
Instil the art of saving
From a very young age you can teach children the importance of saving. Encourage them to earn money by doing chores, save the money and watch it build up over time. Explain about saving for something you want to buy and offer guidance in making the right choices.
Do not be scared to invest
For many young people, the thought of investing can be a daunting one – from the complexity of it to the potential risks. Encourage young people to learn more about investing by speaking to a professional financial adviser. They may still be reluctant to part with any of their hard-earned money but at least they will be making an informed decision.
While retirement may be a long, long way of, as soon as a young person starts working it is a good idea to really get them understanding the need for pension saving. The earlier they start, the more chance they have of having a comfortable retirement. Use a pension calculator to really bring home how much money they will need to survive on.
Try and avoid credit
Some may believe that they need a credit card for ‘emergencies’ or to help build their credit rating. However, the temptation to spend can lead to a spiral of debt. Build upon the saving lessons you teach, encourage young people to save for what they need and want, rather than fall into the trap of ‘spending now and worrying later.’
If you would like to talk to us about investments or any other aspect of financial planning and wealth management, please call us on 01934 875 919.