What are you doing to teach your children about money?

[zetta]

My DS is only 16 months, so I'm still waiting for the day when coins are no longer a choking hazard. Then he'll get his first piggy bank.

When he's a teenager, I plan to get him started with a mutual fund. (See my post about how my father did that for me and how it turned out: Consider starting your teenager off with a Mutual Fund)

I'm curious to hear of any other creative ways that people are using to teach their kids about money.

[LuxLiving]

I helped my boys buy stocks / DRIPs when they were about 8 or 9. We started w/Wrigley's and then moved on to McDonald's and then our local power company. They enjoyed going to eat at their restaraunt and seeing their power trucks out and about. We used their birthday money...tracked the stocks in our homeschool classes, etc. Their investments are doing quite nicely.

As they aged we did the multiple piggy banks for tithing, saving, spending.

Then we opened accounts at the Credit Union.

Then we opened each joint checking accounts w/Mom as joint owner.

Then we learned about balancing check books.

Then we got them debit cards when it was time and they are both
just now getting ready to get their first credit cards to be used in a hopefully carefully controlled environment.

They also each now have Roth IRAs and one has a 403b. Each have multiple CDs and savings bonds as well and operate on a budget/spending plan. Paid cash for vehicles. Both at home still have nice emergency funds and other savings/escrows set up and have quite nice net worths for their ages.

So far - so good!

[zetta]

Wow! How old are your kids? What are the groundrules you are going to set on the credit cards?

[LuxLiving]

Two still at home are 18 & 20.

Groundrules - for now it is that the items will be saved for FIRST and then purchased on the CC. Money will be held in savings until the bill comes in and then paid off before accruing any interest. This is more an exercise in restraint than anything else first and in an effort to get a decent credit score started w/ a view that they will probably both pop off and buy a home within the next 2 -7 years. They have had a House Down Payment fund for six or seven years that is just now taking off because of their increased earning capacities. We'll also probably open them a store CC for clothes purchases and possibly buy a watch or something else at a local jewelers on credit. Again - saving first then purchasing on the CC. And Mom holds the cards until needed. (I am quite the fuddy-duddy!) Once they show themselves reliable then and only then would they actually get full time physical possession of the cards - that's how we did it w/the checkbooks and debit cards as well. None have ever bounced a check - but we did set it up where it was linked to their savings in case of an overdraft.

These ages would probably be ratcheted backwards for kids that weren't homeschooled, but mine are fairly mature for their age in many many ways and yet very naive in others and not as street savy yet as I'd like them to be. They are just now getting to driving on their own and just now beginning to get really interested in girls. And yes, they each have a wedding ring fund.

And Mom & Dad have a Weddings Fund (to cover rehearsal dinners, clothes for us and gifts) and a New Grandbaby Fund (shower gifts) that we are putting money back in. The other three kids have flown the nest (two are married and we have grandkids) and are all very self sufficient and wise with their dollars as far as I can determine - none have returned to the nest or asked to borrow.

Of course the above are more my plans than theirs, and they could circumvent me at any juncture if they decide to leave home earlier than we have already discussed with them. This method worked w/the other three. The older boy here has a LD and may always live at home we just aren't sure yet. The younger is itching to fly .

[T_I_N_A20]

LuxLiving : Wow! I envy you! I hope I can do that with my kids someday... Somday.

[LuckyRobin]

We have just started allowances with our children. It breaks down this way:

Rose age 10 gets $20 for each four week cycle which works out to $5 per week. Of that:

$4 or 20% goes into the savings account before she even sees it
$2 or 10% goes to the Agape House (shelter for women and children) or to church, whatever she chooses that month
$2 or 10% goes into her piggy bank for short term savings
$12 is hers to spend however she wants

For every $1 she deposits into savings each pay cycle I will match 25 cents, up to $8 per pay cycle (a grand total of $2 if she maxes it out). This is how I introduced the whole 401K idea to her, so she will get used to it now. Savings is untouchable except for vacation money and she can only withdraw what she has put in, she is not allowed to withdraw anything that I matched.

Tobias age 6 gets $15 for each 4 week pay cycle.

$3 or 20% to savings account
$1.50 or 10% to Lighthouse Mission (men's shelter) or church, whatever he chooses for the month
$1.50 or 10% into his piggy bank for short term savings
$10 left to do whatever he wants with it

For him I match $2 for the $3 he puts in but only 25 cents for any additional money he may put in up to $8 per month. I do this because he is not capable of doing as many chores as his big sister yet, but I'd like them to have roughly the same amount of money as she does, come vacation time. He will be allowed to withdraw 4 out of every $5 deposited.

They also have extra jobs they can do to earn more money but so far no takers!

When Rose gets older we will introduce her to checking. One thing that I read was to have your child write out the checks for all your bills, you just sign them, and that will give them a really good idea of how much things cost in running a household and how fast the money goes out. I figure on starting that when she is 12.

[PrincessPerky]

My kids are young but we already talk quite a bit about money.

First they get to know why Daddy goes to work (to pay for everything)

And we talk about why we do certain things (like turning lights off, and not wasting water when brushing or hand washing, and so on)

Plus we let them spend some of their gift money, and give some to church, and save some...no particular amounts, just some for now. (they get LOTS of gift money!)

Most baby money plus money for the first year or two goes straight to saving (no offense to church but if you are going to chew it, you don't get to put it in the basket!) This means all three kids have way more than I do in saving!

We talk about the money in ING will grow (funny discussion long ago, when DS realized we ment more money, not a bigger quarter .) and we talk about what the money there is for (future, big stuff, like car, or education, or house) And we talk about how we are not going to touch it for anything else. WE also talk about how Mommy and Daddy have an ING account, but we already have a car and a house, we have it in case of emergency, in case Daddy can't work.

We do not plan on an allowance (no one pays me to do dishes why would I pay you?) But we are discussing ways the kids can get money when they are older (anybody have any good ideas?)

We just now hit the phase where the two older ones realize they could buy some expensive things if they had last gift plus this gift (adults call that saving up for it). We are talking about ways to handle the desire (we want to encourage it, but we don't want it to go to ING) We are debating a 'bank of mom and pop' where they have a sort of bankbook to track up to a goal or something, but at the same time we are not sure we want an 80 dollar toy stove....

We also have a problem where my oldest wants to run up the water bill (I said we talk, I never said he agreed with us!) So we decided he will pay any amount that runs over the budget. (it is water, cheap around here, but still should have seen the look on his face!)

[d_alyson]

There are a bunch of resources out there for teaching kids about money. I have links to a few helpful websites, which also offer great books and games, for teaching kids about money and financial responsibility on the website http://www.campmoolah.com/shop.cfm.

The website is for Camp Moolah, a one-day camp for kids that teaches financial responsibility and how money works. If you are in the Atlanta, GA, USA area, you should check it out. Camp Moolah's fun environment teaches kids ages 11-15 real-world money skills that help them make good financial choices for life. They learn responsible behavior in selecting careers and spending and managing money. The kids love the interactivity of the day, with games and role play instead of lectures.

[vishenda]

oh princessperky that was a good example....

[vsjhoc]

Originally Posted by LuckyRobin

We have just started allowances with our children. It breaks down this way:

Rose age 10 gets $20 for each four week cycle which works out to $5 per week. Of that:

$4 or 20% goes into the savings account before she even sees it
$2 or 10% goes to the Agape House (shelter for women and children) or to church, whatever she chooses that month
$2 or 10% goes into her piggy bank for short term savings
$12 is hers to spend however she wants

For every $1 she deposits into savings each pay cycle I will match 25 cents, up to $8 per pay cycle (a grand total of $2 if she maxes it out). This is how I introduced the whole 401K idea to her, so she will get used to it now. Savings is untouchable except for vacation money and she can only withdraw what she has put in, she is not allowed to withdraw anything that I matched.

Tobias age 6 gets $15 for each 4 week pay cycle.

$3 or 20% to savings account
$1.50 or 10% to Lighthouse Mission (men's shelter) or church, whatever he chooses for the month
$1.50 or 10% into his piggy bank for short term savings
$10 left to do whatever he wants with it

For him I match $2 for the $3 he puts in but only 25 cents for any additional money he may put in up to $8 per month. I do this because he is not capable of doing as many chores as his big sister yet, but I'd like them to have roughly the same amount of money as she does, come vacation time. He will be allowed to withdraw 4 out of every $5 deposited.

They also have extra jobs they can do to earn more money but so far no takers!

When Rose gets older we will introduce her to checking. One thing that I read was to have your child write out the checks for all your bills, you just sign them, and that will give them a really good idea of how much things cost in running a household and how fast the money goes out. I figure on starting that when she is 12.

Wow, what a great system! Sounds like you need a house accountant or CFO!