Teach Your Kids About Money
By InCharge Institute of America, Inc.
We teach our children about physical health and safety, morality, good study and work habits, acceptable behavior - all the things they'll need to function well once they leave the family nest.
So why not include lessons on sound financial management? After all, it makes sense that everyone who works for a living should learn how to save and invest - as well as spend - what they earn.
Tell your children the truth about family finances. As soon as your children are old enough to understand, include them in your family's budgeting, planning, and saving processes. That way, your kids can develop down to earth expectations about what the family can or cannot afford. They will also learn how their own actions (working and saving) can help them get the things they want without financial distress.
Be a money management role model for your children. Make sure your own financial behavior is responsible, and sound. If you let them see you "robbing Peter to pay Paul" month after month, they may grow up thinking that's an acceptable way to handle bills. If you use credit cards, make sure your kids also see you checking your credit card statements and paying your bills on time. Show your children that "plastic" is not an endless source of money with no strings attached.
Let your children manage their own funds. Whether it's an allowance or earnings from a part-time job, help your kids learn to handle money sensibly. Encourage them to save and guide them in setting up a personal budget. Teach them how to comparison-shop. You may even have to let them suffer the consequences of their spending mistakes. When they know that you won't always bail them out of bad spending decisions, your kids will learn to make better spending choices.
Above all, help your children learn that money is not a substitute for love, power, or respect. You'll earn high marks as a parent by teaching your kids that money is only a tool which - when used responsibly - can make their lives easier and more comfortable.
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It's Never Too Early: Teaching Money Management Skills to Children
How To Raise Fiscally Fit Kids...Teaching Kids About Money
Common Cents: Teach Your Kids The Value Of A Dollarbr>
