June 11, 2024
• 3 Minute Read
Father's day is a time to celebrate fathers, and it's no lie that for centuries, father's in general have always had a stigma around them to be the sole bread-winner of the family. In today's day & age, that's not 100% accurate. However, if that is the case, now is the time we celebrate them.
Dad's are the man of the house; the guy that gets the hard things done. And in some aspects, they bring home a larger paycheck mainly due to the line of work they are in. Along with being labeled "head of the household" also comes the financial responsibility. If they have a daughter, it's traditional that her father foots the bill for the wedding. If he has kids, it's usually up to him to be the one to find their first car. Dad's have, since the beginning of time, been responsible for the big purchases, and the large payments. And, all of that knowledge is wasted if not passed down to the next generation. This year, we'd like to talk about the importance of Father's Day with financial planning in mind.
CreditSoup has compiled 4 Financial Tips that your dad should guide you through.
No. 1: Budgets & Money Management
Making sure your kids are financially independent once they're out in the world, is a very important lesson for a father to teach. You've seen your dad provide for mom & the family, but has he took a moment to talk to you about your financial future? Or, have you been able to corner 'ol dad to ask him such questions? As a parent, your child should know the importance of putting together a budget, and how to properly manage their money to ensure their bills are paid each month. There are several new student cards and apps available now to help set them on the right track.
No. 2: Buying a Car & Insuring It
So, your kid is in high school and soon to be out on their own. They should know the ins & outs of how to buy a new car, and also how to insure it. Having that discussion will help guide them down the right path.
No. 3: Buying a House
This one can be tricky. You want them out of the house, to do great things, but you also want to make sure they're doing the right things. Now is the time to talk to them about renting vs. buying a place of their own. Renting is great if they're not keen on keeping up with yard work, or don't know how to do basic home repairs. However, investing in a home builds equity, ensuring them a good start for a family down the road.
No. 4: Saving Money & Retirement
You know the drill - "Dad, can I have some money to go to the movies?" This is a great opportunity to sit down and talk to your kids about saving money, and not blowing it on random stuff. Depending on their age, it may also be the prime time to explain to them about how retirement funds work. Let them know how soon to start investing, and what's the best way to stash their hard earned money away. The sooner they start, the less pressure they'll have at retirement age.
At the End of the Day
Father's Day is an excellent opportunity to review your family's overall financial plan with your dad. Discuss your goals, risk tolerance, and investment strategies. Seek his guidance on money management, buying a car or house, and saving money for down the road. Educate your offspring in financial security for generations to come.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.