I think every parent wants their kid to be able to do “what they want” for their life.
My goal for Ali is that she learns to work hard, and she’s able to find something she’s passionate about and do that thing for a job.
Right now her goal is acting and community theatre, she loves it! She also loves to draw and experiment with other creative avenues.
I want her to be able to devote herself to her craft as she gets older, without worry of the financial windfall those career choices will bring her.
When I sat down to map out how I can help Ali get financially setup, I wrote down four areas that I can work on:
- Teach her how to make money
- Encourage her to invest money
- Learn how to manage money
- Make sure she has access to capital
Teaching her how to make money is definitely the most fun for me. I love showing her how I would market different businesses, and then improve their cash flow. We have fun discussing changes we’d make if we ran the restaurant we’re eating at, or the store we’re shopping in, etc.
I demonstrate the power of investing by making regular investments for her. For the past few years I’ve invested a small amount into a brokerage account that’s setup for Ali. She’ll have access to it when she’s eighteen, and hopefully it’ll be enough for her to buy a car or pursue her trade at a higher level.
Managing money is one of the hardest things to teach, because you often learn through failure. I can show her the basics and give her a peek at how I manage money for the family, but I’ve found my best lessons are learning what NOT to do! I’ve had her read a couple books to learn budgeting, and we’ll have plenty of time to discuss it more as she starts to make more money.
Lastly, I have added Ali to a credit card I use so that she’ll have YEARS of good credit history to her name when she turns 18. When she becomes an adult she’ll be able to show that she had access to credit since she was 13, and the account was always paid on time. She’ll also be able to show part-time employment for years as well, since she works for the Branning Group.
NOTE: If you do NOT pay your credit card, you’ll be hurting your child’s credit
I’m not going to give her enough so that she WON’T work, but I do want to give her enough so that she can choose what she does.