Educating our kids

[crosses]

What steps have you taken to educate your own kids on money? If you don't have kids or they have already grown, what would you do or what would you do differently?

This seems to be a topic where everyone thinks not enough is being done. What steps can we all take so that we leave our kids in better shape than we were?

[PrincessPerky]

Oh I could so use some advice here, my kids are young still (2yDS, and 1yoDD) And s far money management has been restricted to 'this is a penny' and that costs money which Daddy gets for working. We have lots of conversations about why daddy goes to work and what it costs to buy someting. But how do I get him to save when he has everyting he needs? No cable TV so no big purchasses being sold to him. besides he still thinks, "Grandma will buy one" (and in a lot of casses he is right if she knew)

[terry1156]

I think the best way is to be honest with them and to let them participate in family financial decisions as they grow up. I think the best thing I heard of is to set up a 401K plan for your child with you being the company. If they save their money, you match it. teach that to them when they are yound, and they will keep it for a lifetime.

[2moretrees]

As soon as they are old enough to understand money, get them a bank account. Let them take money they get and put it in the bank. Don't make money a secret and teach as much as you can every step of the way.

[akaivyleaf]

Let children help out with the finances, with the budget, and like you said, don't keep money a secret.

[amomof4]

My girls have their own income to manage. They have to buy most of their own personal things, tith, and save. They are 13 & 14. I just recently had them open a checking account. Of course they cannot write a check without my signature as I am on the account too.

I had a problem with them wanting to record the check they wrote including all the pertinant data. That is until one of them forgot to record their $50 tithing check. The bank paid it, but zapped them with a $25 charge. Ouch! I'm hoping that this is a life-long learned lesson since they had to pay it themselves.

[terry1156]

Originally Posted by amomof4

I had a problem with them wanting to record the check they wrote including all the pertinant data. That is until one of them forgot to record their $50 tithing check. The bank paid it, but zapped them with a $25 charge. Ouch! I'm hoping that this is a life-long learned lesson since they had to pay it themselves.

I think it will have a much bigger effect on them at this age than when they have more money to cover it. yes, I'm sure it hurt them financially, but I also bet it is a lesson they never forget. And if that is the case, it was a very cheap lesson in the long run.

[zakity]

My kids go to the stores with me and we talk about money and how much things cost. We also connect things together like if they leave the lights on or waste things (food, soap, or whatever) then we won't have the money for "fun" things like field trips and toys and such. We talk about budgeting and how much money goes out for what (like the electrical bill). In the summer, I hang clothes out on the line and we talk about how I save $20 a month by doing that and letting the sun dry the clothes. I also talk about how I don't have to use any bleach in the summer because the sun does it for me which saves money.

[amomof4]

Zakity:

That is a wonderful idea. I think I will try it with my girls.

[JLP]

This topic has been on my mind. My wife and I have two boys and a baby girl. The boys are 9 and almost 8. We give them an allowance of $1 for each year of their age (so the oldest gets $9 and the youngest gets $8). We require that they pay tithe and put 25% in ong-term savings and 25% in short-term savings. Long-term is for a car or college. Short-term is for something like a skateboard or playstation game or something like that.

I pay them every Friday. I think consistency is important. In that past we hadn't always been consistent.

JLP

[miclason]

my daughter "helps" with our business ventures (she comes with me downtown or to the market place, and she comes with me whenever we have to deliver food/merchandise)...she comes shopping with me, and I let her know why we choose one brand over others, etc...Also, whenever I give her money to spend, she knows she is free to buy whatever she wants, provided she has enough money...she usually asks me if she has enough for X or Z and, sometimes I help her by saying things like: you can either get B or you can get C and D instead...she then makes her own decisions...this has worked wonders!! (as proof of a miracle: we walked out of a Toys'r'us without a fit! ....we don't have such big toy stores in ES...During a trip to the US she visited one for the first time..so this was the proverbial "magic place" to her, and I fully expected her to "overload" and have a meltdown)...

[JLP]

After our boys saved up enough, I bought them each a share of the iShares Dow Jones Total Market Index (IYY). Although, they don't fully comprehend investing, they will appreciate it someday.

JLP

[terry1156]

When my kids were growing up, we did some basic investing (I wish I had done more with them). The one activity that really went well was that I had them choose a company that they wanted to invest in because they knew the name. When you are young, sometimes giving them something they can comprehend and seeing how the price changes in the newspaper is more important than if the investment rises.

[PrincessPerky]

I would so have to agree, My man talks about Kmart all the time, it was the investment choice when he did that game where you pretend to invest and watch the stuff in the paper. Course it isn't worth much now, but at the time it was rising (he's kindof old .)