Advice for children

[Hot dog]

I was going to print out a couple of the topics and read them to my children. Then I thought why not ask what would you all tell them about finance? Could you give me some good advice and facts to share with them? I thought some of the facts in other threads about how easily savings add up if you start young were really good. Thanx!!!

[tinapbeana]

Re: Advice for children

well, i guess it depends on how old your kids are. all i can really offer as a childless wonder are the things that were relavent to me when i was a kid of various ages:

1. what is sales tax and why did i have to pay it on a $1 toy? i only had $1, not $1.05!
2. why does mommy/daddy work?
3. what are bills and why do they make folks unhappy?
4. what does it mean to be rich? doesn't having 'stuff' mean you're rich?
5. i just got a total of $100 at Christmas, and i have no idea what to do with it, but the urge is to blow it all right now!
6. why should i save for something i want instead of just putting on my Christmas/birthday wishlist?

if i had kids, i would suggest they approach money the same way they approach their halloween/easter candy stashes. ever notice that most kids will ration the stuff to make it last as long as possible? try and instill a similar kind of ethic with the money they receive?

[Hot dog]

Re: Advice for children

My kids are 15 and 16. The sixteen year old has a job and the 14 year old babysits for a small amount of money

[tinapbeana]

Re: Advice for children

well, in that case i would definitely talk compound interest (if that's not already been covered), what it'll take for them to get a car/insurance/gas when the time comes (and what you're expectations are, do they pay half? all of it?). i'd also use commercialization to my advantage and have them set a goal for something they want to save for.

[boefixepa]

Re: Advice for children

They are to the age that they should be able to understand just how much real life costs. Show them how much it takes to support a family. Stress to them the importance of getting a good education to earn more, to start of staying out of debt, and to always save some of everything they earn and give some of everything they earn. Those to me are the basics for them to understand.

[glennkawesch]

Re: Advice for children

Hello - this is what we did with our 9 year old. - Glenn Kawesch

He has a lemonade stand and we set it up and gave him all the supplies. We made four places for the money. He sold the lemonade for $1. We put 25 cents from each cup to cover the costs of the stand ( lemons, cups, etc. ), we put 25 cents for "expansion/investent", we put 25 cents for fun and we put 25 cents for saving.

After day 1 and $5 I told him the secret to retail: Location Location Location. He moved the stand to a busier place ( with help of course ) and cleaned up! Now he knows that when you get $1 you don't really get a $1.

Glenn Kawesch

[miclason]

Re: Advice for children

My sis made my niece input all our family expenses on her budget sheet...seeing the numbers add up (and seeing the balance of Salary - expenses at the bottom!) really hit home!

[Hot dog]

Re: Advice for children

I guess what I was looking for is for you all to speak to them so that I could print this right out and they could hear the advice from other people. I don't know everything (surprise) and it is always good to hear it from other people. I guess I was hoping the advice would be more specific. Thanks for all of your input so far.