Q: My 18 year old just graduated from high school last month. However, my husband and I are realizing how little he has been taught about everyday money matters. What can we do to help him learn to manage his money wisely? It looks like he will probably be getting a job and working awhile before going on to college?
A: Unfortunately today's school curriculum is sadly lacking in lessons regarding handling financial matters in the real world. For starters, your son should open two bank accounts (checking and savings) with his first paycheck or any money he may have received as graduation gifts. Many banks offer free accounts with no monthly service fees, especially if your son’s payroll checks are directly deposited into his checking account. It’s also important to stress the importance of implementing some basic wealth principles. The first is to establish an account he uses to track his income and spending. To see how he’s using his money, teach him to balance his checkbook each month when the statement arrives. If your not sure how or are out of practice, find someone to help you with this very important task. It will help you both organize your finances. The second wealth principle is to always pay yourself first. Ten percent of any monies received (allowance, gifts and any wages earned) goes directly into his savings account (interest bearing) to help teach discipline and responsible savings habits. Together these two habits help build a good foundation toward a smarter financial future.
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