Pennygem

Your net worth is calculated by subtracting what you OWE from what you OWN. If you owe more than you actually have, you're going the wrong way.

The goal is to owe NOTHING and build wealth. Don't try to make the bank happy, make YOURSELF happy.

📒Introducing Consequences: Age 11-13
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When a child reaches his or her teens, they begin to develop a sense of reason, long-term consequences, and complications, transforming from emotionally-driven to rationally-driven decision making. At this age, a child begins to desire independence, spending more time with their friends instead of their parents. Teens spend about six hours on average consuming media, and financial peer pressure is a very real force. Once they are old enough hand over the phone to let them pay for things digitally (with your supervision).
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Once your child has a firm grasp of the basics, it’s time to finish the transition into the cashless world. But don’t just introduce e-commerce apps like PayPal. Use this time as an opportunity to expand their financial knowledge to include long-term consequences:
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🔹Credit
🔹Debt
🔹Interest
🔹Budgeting
🔹Identity theft
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🔸Credit
If you’re looking to establish a strong credit score for your child, consider making them an authorized user on your credit card. Parents still retain control over the account, and some cards offer spending limits for authorized users. You’ll be able to see all the purchases your child makes and follow up when reminders are needed. One thing that works to teach kids is to create your own ‘debit’ card. You can pay your kids an allowance on their card and have them record the balance – without handing them cash.
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✔️Be sure that your child makes payments at the end of every month. If your child ever goes over budget, then take what’s owed out of their allowance apps – with a little interest (more on that later).
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🔝Read more on our blog🔝