What Every Child and Parent Needs to Know about Money, Investing, and the Markets

David Bianchi, author of Blue Chip Kids.
Topic:
What every child and parent should know about money, investing, and the stock market.
Issues: What is money? different ways of paying for things; the difference between stock markets and stock exchanges; stock options; funds; analyzing companies; borrowing money; net worth; taxes, and much more.

Teaching Teens Financial Responsibility: What Should They Have to Pay For?

The annual cost for the average couple to raise a 14-year-old in 2012 was $17,730, according to the USDA’s Center for Nutrition Policy and Promotion. It cost $18,380 to raise a 17-year old that same year, and in a house with two teenagers and a 12-year-old, the annual cost to raise all three children rose to $33,590. How much of this financial load should teenagers be asked to bear? If you’re raising one or more teens old enough to work or drive, you might be wondering which expenses they should start paying for themselves. Here’s a guide to get you started.

Build on Your Budget

Approach your children’s budget as a reflection of your overall household budget. Financial advisor Elizabeth Warren advocates following a 50/30/20 budgeting policy: Each month, allocate 50 percent of your income to necessary expenses, 30 percent to discretionary spending and 20 percent to savings and debt reduction.

[Read more…]