How is LSM Consulting Group Helping The Youth?
LSM Consulting Group is providing opportunities for all young people, including those facing challenges, in the US.
We provide coaching, courses and classes for parents teaching their children financial education and for children interested in exploring new business opportunities for the future.
LSM Consulting Group will also assist in locating programs and scholarships to boost your child's education.
INSIGHTS ON RAISING FINANCIALLY SAVVY CHILDREN!
1. Highlight the significance of money
Instilling the value of money in young individuals is crucial. Even small amounts can provide freedom and responsibility.
Invest in teaching valuable money lessons. An allowance is a crucial first step, especially if linked to chores to instill a strong work ethic.
With just a bit of earnings, they embark on mastering a lifelong skill: the art of wise spending. Kids may choose differently when spending their own hard-earned money versus someone else's
2. Highlight the importance of saving
At some stage, your kids will desire items beyond their allowance.
Inspire them to allocate a portion of their allowance for savings—which also introduces the idea of delayed gratification. Encourage your children to establish a habit of saving 10% of any money they earn.
This will inspire them to see the importance of considering both short- and long-term implications when managing their finances.
3. Unveil the world of investing
As your children grow older—particularly during their preteen years—you may want to explore opening a custodial brokerage account. Besides developing a sense of ownership, your child can understand the value of researching and managing their assets.
Remember there might be special tax implications for custodial accounts, so it's wise to consult with an advisor for guidance on their suitability.
Enable them to select a few stocks to invest in or assist in buying fractional shares.
Establish regular meetings to assess their progress. Witness the level of enthusiasm kids display when investing in a familiar and beloved company.
4. Suggest pursuing a summer employment opportunity
Our research shows that young individuals with jobs tend to become better savers in the long run.
Encourage your child to save a portion of every paycheck and even consider involving them in covering other expenses.
It's so important that kids understand the value of paying for gasoline in a car they drive or for trips to the movies with friends.
5. Educate them on credit
When teenagers gain independence and begin driving themselves, consider adding your child as an authorized user on one of your credit cards for support.
From a practical viewpoint, possessing a credit card for managing emergencies such as flat tires is consistently wise. Additionally, your teenager can develop responsible spending habits by ensuring they repay all charges.
This is a chance to emphasize the importance of credit responsibility. When you repay borrowed money, lenders trust you more for future big purchases.
It is vital to outline fundamental differences like those between credit cards and debit cards. Warning kids about high-interest debt and revolving credit is crucial.
A deeper understanding of debt increases the likelihood of responsible management.
6. Explore a Roth IRA
After earning income, children can begin contributing to an individual retirement account (IRA). Consider a Roth IRA for young savers.
Contributions to Roth IRAs are made with after-tax dollars, allowing for tax-free withdrawals in retirement.
7. Assist in establishing a budget
Upon your children accepting their initial positions post-graduation, guide them in creating a budget derived from their incomes and projected expenditures.
Inexperienced individuals may overlook essential expenses like groceries and utilities when living independently. It is a good opportunity to understand the contrast between fixed expenses (monthly mandatory payments) and discretionary expenses (non-essential, enjoyable purchases).
There is always a new video game or a new pair of shoes to purchase, but if spending on those items is going to make it difficult to pay rent or buy gas, they may end up short at the end of the month.Ensure to review their employer benefits with them to maximize all available options and utilize any matching contributions to employer-sponsored retirement accounts, like 401(k)s.
Understanding the value of matching contributions is crucial for them.
The process begins at home
State authorities are implementing measures to bolster financial literacy in schools.
In 2025, 35 states mandate students to complete a personal finance course for high school graduation.
Demonstrating to your children how you achieve your goals through budgeting, saving, and investing can potentially give them the confidence to do the same.
Unsure where to begin?
Let LSM Consulting Group guide you.