Teaching kids about money

[jeffrey]

I stumbled upon this list of ways to help children better understand about money:



Your thoughts? Agree or disagree with the list? Are there certain points that you feel are extremely important to emphasize? What other things would you add to this list when teaching kids about money?

[Thrif-t]

I strongly agree with No 4,help around the house is the price of family life! That's how it was in my family growing up and what I say to my own children when they complain about not getting an allowance. I've always encouraged my kids to find ways to make money. And they have from paper routes, to reffing youth sports or babysitting. They're involved in a lot of school sports so it's hard for them to get a part time job at this time.

[MonkeyMama]

#1 - A+ (I also read this as "Don't go into debt for things" - save up first).

#5 - start working younger than 16. I think this is important. I had already learned significant money management skills with "real money" before I ever had my first W-2 job (at age 16).

#9 - best to make the big money mistakes as a child - very agreed. Which is probably why I am kind of "meh" on #7 and #8.

#14 - AMEN. (Greatest gift to your kids is financial security for self).

I think this covers most the important stuff. In my own childhood home, "saving up first and avoiding debt" was filled with lots of lessons about thinking outside the box and seeking out alternative paths. My 7yo and 9yo are very clear that their dollars stretch further if they are willing to buy things used or wait for sales. I don't think most adults grasp this, in comparison. These are just the lessons that come out naturally. When you ask your child if they want to spend $50 on that new video game, or if they'd rather find it used for $20. You don't have to prod them or force it - the answer to this question is crystal clear when your income is just a couple of bucks a week. But the entire point of an allowance at this age is so they get used to making their own decisions and dealing with the consequences. If they want to buy the $50 game, that is on them.

[Tonyall]

From a young age, my father started give me a wage of sorts (it was a way of saving on taxes) and I was responsible for buying my clothes and most other things I needed. I think it was a great lesson and really changed the way I have always handled money as it taught me a lot about its value early on.

[lorraineb]

I think #9 is highly under-rated. It's painful watching them make the mistakes, but it's important to let them do it and then stick to your guns and not bail them out when the corresponding consequences appear.

[bigdaddybus]

great list!

I helped my 12yo daughter open a Roth IRA a few months ago (helped as in I had open a custodial account, she provided the money) She calls it her "old person account", I am proud of how much she has learned about managing her money so far.

[ynmrav28]

I feel teaching them education is much important than teaching about money.Education is important for child,when they grow up there is nothing,only one thing.They can earn money

[97guns]

my mother instilled saving to my brothers and i at a very early age, she said that we started going to the bank to make deposits and we couldn't even see over the counter. not like todays banking system

http://vimeo.com/43762138

[BuckyBadger]

I feel teaching them education is much important than teaching about money.Education is important for child,when they grow up there is nothing,only one thing.They can earn money

Until the educational system starts teaching about finances, I wholeheartedly disagree.

Just look at all the doctors out there who make a fortune and never get their heads above water? All the people who get scammed by get-rich schemes because they don't know enough to know when something is too good to be true?

If my parents hadn't taught me about money I wouldn't have learned it anywhere else.

It takes a long time to earn money. You can lose it all in an instant.

[theduc]

My brother and I had to save money and pay for half of our bikes when we were kids... our parents took us to the shop and let us pick the bikes we wanted and we put them on layaway. Everything we put to pay for the bikes our parents matched.

my step-father owns a Chevrolet dealership and my brother and I both had to buy our own cars once we were old enough to drive. I think this is a key reason I've always taken care of my vehicles. Because I knew the value of the money that I put into them. My first two cars each lasted about 10 years... I'm currently on my 3rd and expect it to at least last the same.

[grumpter]

Let your kids 'write' checks for purchases. Once they make an overdraft make them pay a stiff penalty. That is all it took me in real life (meaning overdrafts at a real bank) to understand not to spend what I didn't have the savings to cover. 20+ years of using credit cards without ever spending money I didn't already have.

[Baby_nurse]

Until the educational system starts teaching about finances, I wholeheartedly disagree.

Just look at all the doctors out there who make a fortune and never get their heads above water? All the people who get scammed by get-rich schemes because they don't know enough to know when something is too good to be true?

If my parents hadn't taught me about money I wouldn't have learned it anywhere else.

It takes a long time to earn money. You can lose it all in an instant.

Agreed. Even the basic consumer education classes have been removed from schools.

[AsiaTraveler]

I think #5 is good, but too late an age. I started earning income at age 9 by assisting my sister with her paper route (you had to be 11 to get one in your name). Even before that, my mom would let us earn extra money for Christmas presents by doing extra tasks (not chores, above & beyond type stuff).

[swapnil]

+1 for this image I have saved this image for future reference too, I think all this should be taught to a child right from a very small age so that they develop a sense of responsibility towards money and savings when they grow old, because strongly laid foundations always helps to build a very strong building structure which will not collapse until there is a very grave strom affecting it badly.

[dunnrobert700]

Great list, though I disagree with 4 and 8 (and have young children).

On 4, it is fair to expect family members to do chores, but I see this as too good of an opportunity to firm up the relationship in their young minds with working and earning. I don't mind if they end up valuing their labor.

8 seems to contradict 7. In my mind if my daughter gets all excited about a doll and drains her piggy bank after saving for a long time, then has buyer's remorse,that's the whole point of the process. A vital lesson is learned without me saying a word.