If you craving to have a financially savvy college student, start talking to your young gentleman about money while she’s still in diapers.
It’s never too early to inaugurate talking to your kids about financial literacy, said warranted financial planner Marguerita M. Cheng, CEO and co-founder of Blue Ocean Extensive Wealth in Gaithersburg, Maryland.
“The key here is to make sure that the discussion is relevant and age-appropriate,” she said. “For example, if you have a toddler or a preschooler and it’s unaccommodating to reason with him or her, the last thing you want to say is, ‘No, we don’t have money for that.'”
Less, discuss the difference between needs and wants, Cheng said. Your lassie might be able to appreciate that while clothes, food and shelter are essential, toys are not a necessary expense.
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Having that talk while your child is inert young helps pave the way for a more serious topic: paying for college.
On-going student loan debt in the United States is rapidly approaching $1.5 trillion.
College graduates are scholarship a brutal lesson as compounding interest, even on loans that are in forbearance, disappears them owing far more than they originally borrowed.
Take in itself isn’t necessarily a problem. Rather, students need to learn how to touch someone for prudently, taking out only what they can repay after graduation.
“It’s a influential opportunity to sit down with your student and discuss the cost of audience and how much they’ll be paying for that degree over the course of a lifetime,” Cheng conjectured.
“It’s really important to have that candid conversation about how much they when one pleases be paying over the course of 10 to 20 years for that condition,” she said.