Teach your children to make sound financial decisions. Prepare them to use their money wisely and with a purpose
Money issues challenge every family, no matter their background. That’s why Money Minded Families: How to Raise Financially Well Children offers advice on how every adult and child can be "financially well." The book explores how we can align our individual values with finances, while planning for a more secure financial future. It looks at how we can save, spend, share, and invest with a purpose. The author supplies financial basics for families and direction on creating a family mission statement, in order to help drive mindful financial choices.
With the help of this book’s holistic financial guidance, families can take steps to live their best financial lives, rather than simply getting by. Readers will find advice on:
- Practicing financial mindfulness
- Understanding the current financial landscape
- Spending with a focus on personal values
- Understanding key financial concepts
- Engaging in healthy financial socialization
- Becoming financially independent
Today’s financial environment sets up unique challenges, including concerns over Social Security, sky-high college costs, and debt. Kids are more likely to make their buying decisions online rather than in stores. It’s important that children’s knowledge about money begins in the home. When parents actively teach their kids about money, it can contribute to their chances of future financial success.
Within Money Minded Families, parents will find tools for evaluating and improving their own financial wellness. They can also teach their children about positive financial health using the book’s activities, which are organized by age.
Table of Contents
Acknowledgments ix
Introduction xi
1 Background: A Little Bit of “Retirement” History 1
2 The Current State of “Retirement” 5
3 Financial Socialization: Creating Spending, Budgeting, and Saving Habits 11
4 Our Money Personalities 17
5 Gaining a Healthy Perspective on Money 27
6 Your Baseline Values and Goals 33
7 Principles of Money Management: Save 45
How to Save 50
Saving for College 53
Student Loan Debt - Good or Bad? 56
8 Principles of Money Management: Spend 61
The Ins and Outs of Budgeting 63
Cars 70
Buying a House 72
How Long? 72
What Can I Afford? 72
Renting a House 73
What Can I Afford? 73
Skin in the Game 75
Earning Money 78
Taxes 79
9 Principles of Money Management: Share 81
10 Principles of Money Management: Invest 89
How the Stock Market Came to Be 94
Stock Market Basics 94
Reading Your Investment Account Statements 95
Time In the Market, Not Market Timing 100
The Planning Process 100
Why Am I Investing? 101
How Much Do I Need to Invest? 101
How Much Risk Should I Take? 102
What Should I Invest In? 102
The Psychology of Investing 103
Insurance 106
11 The Bucket Approach: Putting It All Together 111
Buckets 112
12 What Does a Good Financial Advisor Do? 117
13 Last Thoughts 121
14 Family Mission Statement 125
Conclusion 128
15 Let’s Recap 131
Additional Resources 133
Books 133
Toy Learning 134
Apps 134
Index 137
