Savvy money management skills are a necessity to weather these tough economic times. BlackEnterprise.com has got you covered with our supplement to the magazine’s three-part “Women & Moneyâ€ series.
Over the next two weeks, we’ll have money management tips and strategies from Harrine Freeman, CEO and owner of H.E. Freeman Enterprises, a credit counseling service.
BlackEnterprise.com: In terms of children, what are some good ways to stay out of debt and prepare for their future? How can women help instill financial responsibility values in their children?
Harrine Freeman: There are several ways women can stay out of debt and prepare for the future of their children.
–Eliminate the “I want my kids to have everything” attitude. Don’t go into debt buying your children everything you didn’t have as a kid or because of guilt that your children don’t have what other children have.
–Buy items on sale or shop at discount stores.
–Check the local newspaper for free activities to find fun and creative ways to spend time with your children.
–Buy in terms of needs versus wants so you do not live above your means.
Women can instill financial responsibility in their children in the following ways:
–Show your children how to budget money and save.Â Explain to your children how you pay bills and how you make sacrifices to buy items for them or to pay for an unexpected expense.
–Take your children to the grocery store or department store and show them how much an item costs and how you determine if you can afford to purchase the item.
–Take your children to free financial seminars so they can learn the benefits of financial responsibility.
–Use resources and tools such as the Federal Trade Commission’s YouAreHere or the U.S. Treasury’s site for kids. The Cashflow 101 board game and books such as Rich Dad Poor Dad for Teens by Robert Kiyosaki or It’s Not What You’ve Got by Wayne Dyer are also good resources.
–Provide examples to your children of other children who are entrepreneurs or investors and the steps they took to achieve their goals.
–Get life insurance for yourself and your children to at least cover burial costs.
–Purchase health insurance for you and your children.Â Purchase disability insurance so if you become ill and are unable to work, you can still pay your monthly bills and expenses.
–Set financial goals for yourself and your children such as preparing for your children’s college education, purchasing a home if you are not currently a homeowner, and paying off your mortgage.