Keep it simple, stupid. Keep it short too.
I was reminded of the famous KISS principle while reading Ron Lieber’s recent New York Times Your Money column about distilling your financial to-do list to a set of bullet points that fit on a 4 by 6 index card.
The examples in Ron’s article inspired me to produce this variant: a “Money Mentor Index Card” listing the key things I want to teach my kids about money. Here’s the list.
I want to teach my kids about:
- Spending within their means using their OWN money and budget. (Note: the budget includes saving and donating too!)
- Everyday living expenses by sharing in the cost of the family cell phone plan.
- The power of compound interest by paying them an aggressive parent rate on savings.
- The cost and pain of debt via a parent-issued loan for a big ticket item, like a laptop or a phone.
- Patient, low cost, diversified investing via index funds held in a Roth IRA as teens.
It’s so short, I could KISS it!
What would you put on a Money Mentor Index Card for your kids?