Prepare Kids/teens For Financial Succes | 6 Effective Tips

preparing your child for financial stability and wealth is arguably one of the most valuable things that you can do for them however if you're like me or my husband who grew up in lower to middle class families we started our credit and financial Journey at the age of 18. this is when we began working whenever we began building our credit but did you know that actually starting at the age of 18 building your credit and your wealth is actually 18 years too late and that's exactly why I created this video in this video I am providing you with six very useful tips for your children and teens in order to get them started early on the road to financial stability so let's go ahead and dive into step number one add your child as an authorized user to one of your credit cards now obviously this is if you pay on time and if you're responsible now with that put aside I know what you're actually saying how am I supposed to use my child as an authorized user whenever they're only three years old okay so this is is why I want to take you into my computer here and I want to show you an article from Forbes where we can actually dive in and understand that yes it's actually possible all right as you can see here we are on Forbes advisor website what I really want to hone in on is down here number four it says build their credit history as an authorized user your credit card will build your kids credit history the credit card usage and payment history will be added to their credit profile and this will help them when it comes time to apply for their own credit card or other types of credit so here you can see guys that you can add your child as an authorized user on your credit card now keep in mind this isn't a one size fits all it depends on the credit card company that you have so let's go ahead and look at some of the main companies and what their age limits are now as you can see here we've got this from creditcards.com up here if we scroll down a little bit we've got Barclays the age of 13 Capital One no age limit you can add them at the age they are born or two or three seamless Citibank Chase Bank synchrony and down here at the bottom Wells Fargo then we have U.S Bank for example the age 16 discovered the age 15. now on this first step I personally wanted to add that I would never tell my child they were an authorized user and I would never allow them to have my credit card for me I would just do this strictly to build their credit so that when they become 18 years of age they begin their journey in the good to excellent credit range instead of no credit at all this brings me to step number two open a child slash teen checking and savings account now this is the account that I would allow them to have access to many of these accounts give your child a debit card and access to the account so that they're able to swipe that card this is very exciting for children they're going to be able to get a card in their name with their name on it and in addition your child's going to be able to learn things such as annual percentage yield which is apy you can teach this to them and they're able to look at their account and see their money building over time these are the types of things it's good to introduce your child to because if they are introduced to it they're learning about it at a young age they're able to understand it they don't have to wait till they're 18 years old so let's go ahead and go back into my computer and show you just a couple of sites that do offer this teen or child checking and savings here we are on the Capital One website we can see here that they have the kids savings account take their first step together with an account that's all fun no fees let's scroll down here they do have a extremely small apy at 0.30 percent which is their savings rate that they're going to add daily on the money they have in there no fees zero dollar minimum to get get started they do have the automatic savings wherever you can have it just deposited from your account here we are on the Fidelity youth checking account website let's go ahead and scroll down here jump start your teens Financial learning with the Fidelity youth account your 13 to 17 year old can learn to save spend and invest in one secure place we can see here zero account fees are minimums to open savings and investing opportunities here with Fidelity and they've got some Financial education available a tailored curriculum to give teens the financial Foundation they need secure parental oversight gives you the parent opportunity to keep track of spending where they're at Etc they do provide down here a special offer for you a hundred dollars for when you fund a new account with fifty dollars or fifty dollars for your teen when you open a youth account really really really cool moving on to step number three introduce books about finances when I was doing research for this video I found so many adorable Financial books for kids I didn't even know these books exist you guys they have the most adorable age range depending on your child's age all the way from three four and five all the way up to teenage years where you can be introducing your child in a fun way to learning about saving making money investing money and just to save you guys a little bit of time I have placed direct links for 14 books in my description box below with the names of the books so feel free to check that out however if you don't want to spend a penny you can gather the names from these 14 books that I recommend end and you can check one or two or all of them hopefully out at your local library for free moving on to step number four introduce a money earning chore chart now this concept is absolutely brilliant and I know what some of you may be thinking I don't want to give my child money for doing things they should just do because they're being a responsible or obedient however if you are open to it I think this is a brilliant idea because it opens your child up to not only doing their chores but feeling responsible and independent so let me go ahead and pop up right here on the screen this is a money earning chore chart you guys and as you can see zoomed in a little bit here put your chores you can place the amount you're willing to give them and each day of the week you can have them pick a check mark if they did it or you can check make that check mark and then you pay out you know every Friday and this could be either cash physically for them to hold or you could also directly transfer it over to their little account and have them be able to see it there or do half and half I know some of you may not want to purchase this you don't have the means to make this you don't even want to spend a few dollars or you don't have a few dollars so I purchased this for you guys I did not make this I purchased this this and I actually placed a direct link to a PDF where you can download and print this and use it in your own home so if you would 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