Good financial habits require strong doses of willpower, self control, discipline, and objectivity.
These words are not typically uttered in the same sentence as teenager. In fact, they don’t particularly pair well with human.
The solution? Automation.
- Automated transactions don’t forget, or get tired, or agonize, or get distracted.
- Automated payments don’t incur late fees.
- Automated deposits don’t act impulsively.
- Automated investments don’t react emotionally to market swings.
But financial automation can have a dark side: complacency and neglect.
- Automated payments don’t negotiate a better rate.
- Automated payments don’t check to see if you’re still using the service.
- Automated deposits don’t adjust when your goals or situations change.
The solution? Notifications.
Teach your kids to couple financial automation with notification. Show them how to set up email and text alerts for their automated financial transactions.
The automation enforces the discipline. The notification forces the awareness.
That’s how to set it but not forget it.
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