6 Steps To Raise Financially Responsible Children: Step 2

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Step 2: Happiness is a positive cash flow.

Teaching kids about the cycle of money is critical. Children must learn that money is earned through hard work, saved with a plan, spent according to goals and budgets, and given to charity.

There is a vast opportunity for your child to spend his money. American teens of Generation Z, 67 million Americans children born between 1997 and 2012, spent an nearly $80 billion in 2018. Providing guidelines on spending and helping your child’s first budget will build a good foundation of financial management for your child that they will use to prosper throughout their lifetime.

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