Today still, parents are the most influential financial instructors that their children will ever have. And one thing parents need to teach their kids is the importance of starting to save for retirement as early as possible, right after they graduate high school.
Nancy Phillips argues this necessity is driven by the fact that the earlier you start saving, the more you will be able to gain from compound interest. This is exactly why parents need to be proactive on the matter. For Nancy Phillips, it is important to attach an emotional connection to the saving process. To do so, Ms Phillips suggest discussing their goals, dreams and ambitions for the future.
To reach these goals, Nancy Phillips believes the young generation needs to realize money is just not for spending. Financial experts agree to say that our belief system around money is set as soon as age 6 or 7. To help parents educate their children, Ms Phillips has created the GISS method: give (10%), invest (15%), save (25%) and spend (50%). When investment income becomes greater than spendings each month, financial freedom has been achieved.
Read the full article here.