Diversity Woman Magazine

FALL 2016

Leadership and Executive Development for women of all races, cultures and backgrounds

Issue link: https://diversitywoman.epubxp.com/i/730428

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Page 46 of 59

d i v e r s i t y w o m a n . c o m Fa l l 2 0 1 6 D I V E R S I T Y W O M A N 45 Tanis Tanisha A. Sykes D uring the holiday season, Jackie Taylor, an HR exec at Ernst & Young and a single mother liv- ing in ing in central New Jersey, packs u packs up her five kids, ages 7 to 14 7 to 14, and heads to Man- hattan. hattan. e kids are full of glee of glee because 'tis the season season to give out Bless- ing Ba ing Bags to those less fortuna fortunate. Her Her whole family fills zip-top zip-top bags with some everyda everyday essentials—in- cluding cluding toothpaste, snacks, and a f and a few bucks—and shares them w them with people in need. "Money "Money has its purpose, but it's not the not the only purpose," says Tay- lor, wh lor, whose philanthropic efforts include include volunteering at Habitat for Hum for Humanity. "rough real- life situ life situations, I am teach- ing my ing my kids to be empa- thetic w thetic while allowing them to see to see how our financial econom economy works." A study from behavior ex- perts at Cambridge University reveals that a child's money mind-set is fixed by age seven, underscoring the power parents have in shaping the financial habits of their children. "Instilling good money habits in your kids at an early age is going to help them to develop into adults who are going to win financially," says Rachel Cruze, coau- thor with her father, financial guru Dave Ramsey, of the best-selling Smart Money Smart Kids: Raising the Next Generation to Win with Money. Teaching your children how to earn, save, give, and manage money sets them on a road to financial prosperity. Here are some smart habits that will stick with your kids for life. Start with the basics. "I leverage partner- ships with organizations like World of Money that provide technical information like the Rule of 72 [a shortcut to estimate mate Rule of 72 [a shortcut to estimate the number of years required uired the number of years required to double your money at a at to double your money at a a given annual rate of return], urn], given annual rate of return], budgeting, money manage- age- budgeting, money manage- ment, investing, and disci- isci- plined credit card usage," age," plined credit card usage," says Taylor. Download free free apps PiggyBot and Green- een- apps PiggyBot and Green- $treets: Unleash the Loot! oot! to introduce fun ways to s to introduce fun ways to to learn about money. Take a trip to the bank. ank. Take a trip to the bank. Help your children open open Help your children open a savings account, and en- en- courage regular deposits. As As the balance increases, teach each the balance increases, teach them how interest grows rows them how interest grows and explain the importance ance and explain the importance of maintaining a minimum mum of maintaining a minimum balance, checking the account ount balance, checking the account online, and avoiding bank fees. ees. online, and avoiding bank fees. Introduce budgeting. Us- Us- ing an old-school budgeting ting method like the envelope lope method like the envelope system shows your kids that that system shows your kids that you're intentional about bout you're intentional about telling your money where here telling your money where to go. "When I was grow- row- to go. "When I was grow- ing up, I remember my my mom pulling mom pulling cash out cash mom pulling cash out out of an envelope marked 'Food' and that's how she paid for it," says Cruze. "Explain to kids that a budget gives you more freedom because it gives you con- trol over your money." Financial Peace Jr. can help you teach your kids how money works. Everydollar offers practical advice on how to keep a budget balanced. Show the relative value of the dollar. On a recent trip to China, Taylor took her oldest daughter to a factory where THINKSTOCKPHOTOS Help Your Kids Build Good Money Habits 15 smart ways to educate your kids to manage money DW Life > Money Matters

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