Parents can't force their kids to be good with their finances once they're grown, but they can do certain things to put them on the right track.
In "Life Happens: A Practical Guide to Personal Finance From College to Career" by Mitchel D. Weiss, a former banker who currently teaches personal finance at the University of Hartford, are some tips on how parents can prepare their children for a sound financial future, according to Life Goes Strong.
Parents should teach their kids to keep their pin numbers, social security number, and checking information private, according to Weiss's book. "Kids store a lot of information on cellphones, which are becoming digital wallets. Make sure your kids password protect and encrypt their smart phones," Weiss said in his book. "If they use a cellphone to facilitate payments, make sure they link the payment with a credit card, not a debit card or cellphone service carrier. You have chargeback rights on a credit card — if you see a charge that isn't yours, the provider must remove it from bill until resolved. If it's a debit card or cellphone carrier, the money is gone, and you have to negotiate to get it back."
Even with rising student loan debts among college students, things can be done to curb the costs, according to Weiss. Monthly debt payments shouldn't exceed 30 percent of a person's gross salary. If a person thinks he'll earn about $50,000 annually after graduation, than he shouldn't borrow more than that amount.
Click to read the whole article at Life Goes Strong.
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