Getting
Money for Graduation?
Should You Save it or Spend it?
Is your graduating senior getting a substantial
amount of money for graduation? If so, take this opportunity
to teach your child financial responsibility. This may be
the last chance you have to seriously influence your child's
behavior with money. The older they get the more difficult
it becomes. Then the question becomes, should they spend
it or invest it.
After starting college, your child will literally be bombarded
with credit card offers. In the past, credit card companies
solicited students right on campus. Many campuses have discontinued
this practice, but credit card companies still manage to
mysteriously obtain students phone numbers and addresses.
This was my personal experience when a young relative came
to live with me for college. Just a week at home on vacation,
and I received six phone calls from four credit card companies
to offer my young relative a credit card. Good thing she
didn't answer the calls!
Because of the constant bombardment of credit card offers
your student may began to think credit is money and money
is credit. It is up to you to combat this constant mental
bombardment. Now is the perfect time to teach financial responsibility
to your graduating senior. Use my budget tutorial, MsFinancialSavvy
101 to discuss budgeting and balancing the money you have,
even when you get it as a lump sum. Then go on to study my
investment tutorials, stocks 101 and mutual funds 101. So
what is my recommendation? Spend some and invest some. Both
spending and investing a lump sum, is a part of the process
of learning to balance money.
For ways to save money[click
here]
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal finance
book, Let's Get Financial Savvy! ISBN
#0971979502.
Article
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