Give the Gift of Financial Literacy
We’ve touched on financial literacy in previous blog posts, but during a time of year when we’re all searching for the right gift, financial literacy is the gift that can continue giving your whole life. Having good money habits throughout your life can save you money and help you make smart financial decisions.
Lincoln Savings Bank wants to offer up some good starting points for people of all ages to get on the right track in your financial life.
Help your child start a savings account- even if they are too young to have an income, you can still teach about setting savings goals and delaying instant gratification for the sake of saving up for a future purchase.
Understand the basics- knowing how things like compound interest, interest rates, loans and other financial basics work is essential. These will be the building blocks you build the rest of your financial life on.
Create a budget already- well over half of U.S. adults don’t use a budget, a fundamental financial tool that can help you see where all your money is going.
Learn to balance a check book- sure, you can just use your online banking account to keep track of things, but being able to balance a check book is an essential skill.
Be a good role model- if you have bad spending habits, your kids are most likely going to develop the same habits. Responsibility on your part breeds responsibility on their part.
Emphasize the benefits of saving- whether it’s for an emergency fund or for retirement, your savings account is the first place money should go whenever you get paid.
Debt management- everyone finds themselves with debt of some kind in life, so knowing how to manage it and pay it back is a crucial skill. Whether it’s evaluating your mortgage payments or teaching your college student about paying back their loans, debt management is universal.
Financial literacy is something that doesn’t cost anything to learn more about. You only need to foster an attitude of wanting to learn and stay ahead of the game when it comes to your money. Lincoln Savings Bank also offers resources to help with financial management, so don’t hesitate to contact us to learn more.
Lincoln Savings Bank, Member FDIC
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