6 Steps to Raise Financially Responsible Children


	Kids, Parents, and Money

	The Bad News

	The Good News


	Income

	Spending

	Budgeting

	Learning Milestone


	Goal Attainment for Kids

	Short Term Goals

	Long Term Goals

	Goal Worksheet

	Learning Milestone


	Everyday Lessons

	It Only Takes a Few Dollars

	Overview of Investments

	Risk Profile

	Learning Milestone


	Terms

	Teaching Teens About Credit Cards

	Managing Debt

	Identity Theft

	Learning Milestone


	Creating a Financial Plan

	Five Immediate Steps to Take

	Age Appropriate Activities

	Final Learning Milestone

	Overview
	Family Culture
	Being a Role Model
	Your Own Financial Plan
	Setting Expectations for Different Ages
	Learning Milestone

Your Own Financial Future

It is important to put a short and long-term financial plan together for your family finances. Ideally it is best to do before you begin educating your child about managing their own money. Remember, it is not what you say but what you do. So if you are trying to teach your child one thing and doing the exact opposite, your lessons will have little impact and you will lose credibility. However, don't let your own procrastination stop the financial education process all together, you can still infom your child of the basic money principles even if your own financial health isn't in top form.

Take the brief test below to get an idea of the state of your financial health and to pinpoint areas where you may need more work. Simply answer the questions with a Yes or No and keep track of your answers to obtain your quiz results once completed.

Financial Health Test

1. I can easily locate the paperwork and documents for all of my insurance policies, investments, and deeds for my car(s) and home(s).

2. I know the total value of my net worth--including my savings, investments, home equity, etc.--updated on a quarterly basis.

3. I know approximately how much I spend on utility bills and other staples each month and can keep these expenses to a narrow range.

4. I have set a maximum amount of my discretionary income that I may spend each month, and I stay strictly within that limit.

5. I have a target limit in mind of what I can afford to spend on a daily basis, for expenses such as grocery, drug store, or mall shopping or dining out.

6. I have at least one utility and one credit card registered in my name only--not as part of a joint account with a spouse or partner.

7. I check my credit rating at least once every three years and before making any major purchase, such as a car or home.

8. I have closed all credit card accounts that I do not regularly use.

9. I have paid off all outstanding debts and have cleared up any other blemishes on my credit report and am up to date on current payments.

10. I have consolidated the majority of my debt into just one or two payments a month with low interest rates.

11. I have at least three to six months worth of living expenses saved in case of an emergency.

12. I have a percentage of my salary deferred to a long-term retirement account each pay period (I do this myself or it is automatically deducted by my employer).

13. I have established three short-term financial goals, such as saving for a car, vacation, or new computer.

14. I have established three long-term financial goals, such as saving for a downpayment on a home, investing for my child's college education, or retirement.

Page 4 of 6: Family Culture