Originally posted by LivingAlmostLarge
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You also need to actually teach them the basics about what money is and how it works. Don't expect them to learn anything at all in school. Just assume they won't.
They are old enough now to grasp the concept that money is earned by working. Point out how people do all sorts of different jobs to earn money and that they then use that money to pay for everything they need like food and clothing and a place to live and a car and toys and movies and vacations.
When they're a bit older, you can introduce them to different forms of payment: cash, checks, debit and credit cards. Then you can teach them about debt and how it can be a great tool if used responsibly but can also cause huge problems if not handled properly. I sat down with DD and used an online CC calculator to show her what happens when you carry a balance on your CC. But I also showed her how much we earn in rewards each year by using our CC properly and responsibly. She was probably about 10 when I did that. Fast forward to the present and she's 22 and has a rewards CC that she uses minimally, pays in full each month, and earns $120/year in rewards from.
The main thing is to always be on the lookout for teaching moments. They occur practically every day if you are watching for them. It might be when you are out shopping for groceries. It might be when a certain commercial comes on TV. It might be some ad that comes in the mail.
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