Wednesday, December 14, 2005
Start a Financial Conversation with your Child / Mentee
What is money? What makes it valuable? Where do your parents get it?
Where do your parents do their banking?
When and why do people pay interest? How do you receive it?
How does a credit card work? a debit card?
What is debt? How is debt different from credit?
How does a check work? a check register?
What do you think your parents’ annual income is?
What percentage of your parent’s income do you think goes toward income taxes? Property taxes? Sales taxes?
Make a list of the monthly bills you think your parents pay. What percentage of their income do you think they pay in each category?
How much money do you think your parents spend on groceries each month?
How much do you think your parents’ home is worth? If they don’t own your home, how much do you think they pay in rent each month?
How do your parents know how much extra money they have to spend after they’ve paid their bills?
What is a mortgage?
How much do you think it costs your parents to operate their vehicle for a month? For a year?
What percentage of your income do you think you should give to church each year?
What is savings and why should you do it?
What is a budget? What is a deficit?
If you moved out on your own, how much money would you need to live each month? Just for fun, make a list of the bills you would have to pay and what percentage of your monthly income would go to each category.