WEST PALM BEACH, Fla. - Many people who are looking forward to retiring are learning the hard way that their retirement accounts are smaller than what they expected. It’s a lesson they don’t want their children or grandchildren to face.
Money experts will tell you the key to a wealthy future starts when children are still young.
At about the same age your children are playing with building blocks, parents should be helping them build their financial future. That’s the advice from financial experts, like Chartered Retirement Planner Michael Terrio.
He says it’s not too early to teach them financial rights and wrongs.
"They did a study and 60% of kids between 15 & 18 failed, or basically, got a D. But I consider that a failure on the financial literacy test. So, that's a problem. We've got to start instilling those things as early as possible," said Terrio."
Terrio practices what he preaches with his two young children.
"We put money into an ATM and if they want to go out and buy something with it, we actually make them use their own money," said Terrio.
Terrio says if you teach kids the value of money starting at around 3-to-5 years old, chances are they'll carry that lesson throughout their lives.
"Earning takes a lot of work. So have them earn money. Have them do some chores, do some things around the house and feel what it takes to have the work that goes into it and the satisfaction of actually having earned something for that hard work."
Also, be careful if your kids see you use an ATM often.
They're liable to think there's an endless stream of money coming out of the machine.
Terrio says explain to youngsters that an ATM is just an extension of the bank. So some of the money that you have in the bank is in there.
Terrio says as with most things in life, values learned early on will pay dividends later in life.