Father’s Day is a great time for dads to talk with their young children about money, particularly ways to grow toward financial independence. Think back for a moment; how much was your first allowance? Chances are it was a modest sum based mostly on your age. It’s a pretty good bet that your parents had an “expiration date” in mind for your childhood stipend. As it turns out, many dads and moms should have put that date in writing … in a contract posted on the fridge!
According to data from the Pew Research Center, nearly one in five adults 18 to 34 years old are still getting regular financial help from parents or other family members. The tight job market, onerous student loans, and the high cost of living are all challenges fueling this trend. Even so, a good grounding in financial basics has kept many other young adults from leaving a body imprint on the parental couch.
Here are some tips on what fathers can do to teach their kids to manage money, be self-sufficient and – hopefully – even financially savvy: