Celebrity bankruptcies like NFL quarterback Michael Vick, hip-hop musician 50 Cent, and award-winning actor Nicolas Cage among others, have been widely reported by the news media.
Having once been one of the nation’s wealthiest hip-hop artists, 50 Cent wound up millions of dollars in debt, reducing his net worth from $150 million to $0. While this story is unfortunate, he’s not alone. His story stands as a cautionary tale for many. Whether you are a celebrity or just the ‘average Joe,’ one rule should always be followed: Never spend beyond your means.
Bankruptcy statistics among celebrities show how quickly sudden wealth can disappear after poor financial decisions. One of the most important tips for young adults to remember is to be an active participant in the management of their money. Whether it is through a savings account or stocks, it is important to clearly understand what you are investing in. Even those who hire a financial adviser should monitor financial activities and stay involved when making investment choices.
Parents can play an important role in helping their children develop smart spending habits and money management. There are numerous daily opportunities that involve money management. Take advantage of including your child in these money matters so they can learn about it first hand.
Here are some ways to engage your child in money management and encourage smart spending habits:
- Allow them to help with coupons and price comparisons;
- Explain TV advertisements and messages that encourage spending;
- Discuss how currency impacts society;
- Give them an earned allowance;
- Start a savings account for your child;
- Explain balancing spending and saving;
- Remind them that money cannot buy happiness.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
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