If you have children, one of the best life lessons you can leave them with is how to properly and responsibly manage money. Vehicle title loans are one money management tool, but you need to teach your children all the best lessons and where to find the tools they will need most to be a success.
Although vehicle title loans are one money management tool, they shouldn’t be the first one you teach your children about. You should first start with teaching your children about basic money management. The old adage “pay yourself first” is the best rule they can learn. You have to set some money aside every time you are paid—money that is for you, your safety net. Ideally, you would have savings for long-term goals and savings for emergencies, and you would contribute to both every time you are paid.
The second lesson is about budgeting. If you don’t track what you are spending, you might never figure out where the money goes. You need to track every penny for at least two months—ideally around something big, like Christmas, so you can see what your ordinary (fixed) expenditures are, like rent and car payments, and what you go overboard on like gifts or groceries.
Then you need to establish a budget that allows you to spend what you need to, but also encourages you to save for long-term goals like a house or a boat or a holiday for the family. There are some great expense tracking apps that you can download, many for free.
Your children also need to know about taxes, health and vehicle insurance, and other expenses that they don’t get to choose, yet they will be obligated to pay. Help them remember that they need to set money aside for, things like house taxes or vehicle registration bills, that occur only annually, but that must be paid.
Finally, teach them where to turn if they get in over their heads. Teach them about the different kinds of loans that they can turn to and what the advantages and disadvantages of each kind are.