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How can I teach my child the skills and habits needed for financial success?
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First, start by teaching them the basics of budgeting and money management. Share the importance of living within their means, understanding the power of compound interest, and creating and sticking to a budget. Explain how to differentiate between needs and wants, and how to make smart spending choices. Show how to open a bank account and create a savings plan. Encourage them to track their spending and save for big purchases. It is also important for your child to learn how credit works and how to establish a good credit record. Talk about the importance of avoiding debt when possible, and how to make informed borrowing decisions. Finally, focus on helping them develop the financial skills and habits they need to practice financial responsibility.