Thursday, June 16, 2016

Don’t Let Your Kid Become A Financial Dinosaur

Money Dinosaur

If I had stopped learning about personal finance as a kid, I’d be eating some serious financial dust today. Why? In the late 60’s and early 70’s, the following financial opportunities didn’t even exist:

  • Online banking. I’d still be wasting my time waiting in line at my local bank.
  • Automated bill pay. I’d still be writing checks, licking stamps, sealing envelopes, and missing payment deadlines.
  • Personal finance management software. I’d still be wondering where my money was going, or working way too hard to figure it out.
  • Real time account text alerts. I’d still be surprised to find out my credit card was compromised a month or two ago, or that I over-drafted my checking account.
  • 401(k)s. I wouldn’t have automatically saved for retirement with each paycheck, reduced my taxable income, or received free matching money from my employer.
  • Roth IRAs. My retirement investments wouldn’t be growing tax free. And my teens wouldn’t even have retirement accounts yet.
  • 529s. I’d be letting taxes eat away at my kid’s college savings.
  • Low cost index funds and ETFs. I’d still be gambling on individual stock picks, getting poor returns, and paying outrageous investment fees.
  • Automated saving apps. I’d still be lacking the willpower and energy to take advantage of everyday opportunities to sock away some spare change.
  • Prepaid cards. I’d still be using cash, bank debit cards, or (gasp) credit cards to teach my kids the financial ropes.
  • Personal finance blogs and podcasts. I’d still be in the dark about most of the items above or struggling through boring finance books. I wouldn’t be perusing thought provoking posts on Mr. Money Mustache or laughing along to Stacking Benjamins.

And you? What would you be missing out on?

Make a list of the smart financial inventions that have emerged since you were young. Share it with your kids.

Sure, they’ll make fun of you for being a old fossil. But they’ll also absorb a crucial message: if they don’t keep learning about personal finance, they could be the financial dinosaurs of the future.

No comments:

Post a Comment