Adulting 101

18 years ago today, my daughter Ella MoChuisle was born! 🎉🎂 It's an exciting milestone when your child officially becomes an adult – and (if I’m being honest), a little terrifying. It's got me thinking about whether I’ve prepared my kids for the reality of adulthood…(and since I’m “me”)…and managing their money.

Here are 10 things we should talk to our kids about to help prepare them for, well… life.

Value of Earning

It’s important they understand the world of earning money – and no, asking mom doesn’t count. Encouraging them to take up part-time jobs, internships, or start a small business are great ways for them to get that first-hand experience in getting a paycheck. This teaches them the value of hard work and the satisfaction of earning their own money. Giving them a free ride won’t help them in the long run (IMHO).

Budgeting Basics

Of course, I’m throwing budgets on the list! Teach them how to create a simple budget. Explain how to track their income and expenses, and the importance of living within their means. Budgeting helps them make conscious decisions about spending and saving.

The Power of Saving

Instil the habit of saving a portion of every dollar they earn. Discuss short-term and long-term savings goals, and how saving can provide financial security and independence. For me, retirement is of course on the list, but I am always squirreling away vacation money, too.

Understanding Credit and Debt

How many first year college kids get sucked into their first credit card with the lure of a free stress ball?? Before they get sucked into the credit card trap, explain how credit cards and loans work, including the concept of interest rates and the consequences of accumulating debt. Emphasize the importance of paying bills on time and the impact of credit scores on future financial opportunities.

Smart Spending

This is that whole discussion about the difference between wants and needs. Encourage them to think critically about their spending choices and the difference between impulsive buying and thoughtful purchasing.

Investing for the Future

Talk about some basic investment concepts like stocks, bonds, and retirement accounts. Discuss the power of compound interest and how investing can grow their wealth over time.

Financial Safety

Teach them about financial scams and identity theft. Emphasize the importance of keeping their financial information secure and being cautious about sharing personal details online and over the phone.

Insurance

The reality is that they’re going to need to deal with insurance at some point. Whether it’s for a car, renters insurance, or health insurance, having an understanding of how insurance works and what to watch for can give them a bit of a leg up when making that first call to a broker.

Navigating Financial Tools

Familiarize them with banking tools like checking and savings accounts, mobile banking apps, and online financial resources. This helps them become comfortable managing their money in a digital world.

Life Skills

Discuss how money plays a role in everyday life decisions, such as renting an apartment, buying a car, or planning for college. Teach them practical skills like reading a bank statement, understanding a paycheck, and basic tax knowledge.

Remember, the goal is to make these lessons engaging and relatable; to prepare your kids for life - no pressure right? Do your best - use real-life examples, encourage questions, and perhaps share some of your own financial experiences and lessons learned.

The more comfortable they are with these concepts now, the better prepared they will be for their financial futures.