Nobody ever discussed finances and credit with me as a child so I had to learn the hard way. If I ever have kids, I want them to be financially literate and able to make their own decisions. I also want to give them a good financial start so they are not just thrown out to the wolves. Does the following plan sound reasonable to you?:
1. When my child is around 10-12, I want to assign them "homework" by showing them articles explaining how credit works and the costs of running a home
2. When they are 16-18, I would make them have a part time job. I would then require them to transfer 10% to savings. If possible at this age I would add their names to my credit accounts to start a credit file for them. They would not be aware of this until they turned 18.
3. When they are 18, the 10% they saved would be given back to them since they are now an adult. This money is theirs to do whatever regardless of if they stay at home or not or whatever choices they make. They would have 3 options if they wished to live at home/get continued financial support from me:
a. Go to college/trade school AND work a part time job: If they chose this option, BOTH employment and schooling would be required for them to live at home. "Rent" would be 20% of their income. That "rent" would go into a secret account they are unaware of and I would match 50-75% of that 20%, depending on the income level and what match I could afford. This would continue until they either left the house or got married, whichever happens first. At that point I would give this money to them and then their financial success/failure is on them and they get no bailouts from me since they would have all the financial basics learned.
b. Work full time: They could still live at home. The "rent" becomes 30% of their income, but the other conditions of how I treat the "rent" and turn it back over apply.
c. Military: If they do this, then I will save my spare money until 50% of their enlistment then give it to them.
1. When my child is around 10-12, I want to assign them "homework" by showing them articles explaining how credit works and the costs of running a home
2. When they are 16-18, I would make them have a part time job. I would then require them to transfer 10% to savings. If possible at this age I would add their names to my credit accounts to start a credit file for them. They would not be aware of this until they turned 18.
3. When they are 18, the 10% they saved would be given back to them since they are now an adult. This money is theirs to do whatever regardless of if they stay at home or not or whatever choices they make. They would have 3 options if they wished to live at home/get continued financial support from me:
a. Go to college/trade school AND work a part time job: If they chose this option, BOTH employment and schooling would be required for them to live at home. "Rent" would be 20% of their income. That "rent" would go into a secret account they are unaware of and I would match 50-75% of that 20%, depending on the income level and what match I could afford. This would continue until they either left the house or got married, whichever happens first. At that point I would give this money to them and then their financial success/failure is on them and they get no bailouts from me since they would have all the financial basics learned.
b. Work full time: They could still live at home. The "rent" becomes 30% of their income, but the other conditions of how I treat the "rent" and turn it back over apply.
c. Military: If they do this, then I will save my spare money until 50% of their enlistment then give it to them.
