We all know that it is important to make sure that your child learns important financial lessons that can help him or her later in life. However, it can be difficult to figure out how to help your child relate to money in a meaningful way. After all, a five-year-old isn’t going to grasp the concept of interest. However, there ways to help your child relate to money in ways that are age appropriate, and it’s important that you begin teaching the value of money as soon as possible.
Many Children are Visual Learners
In many cases, children need to be able to see how something works. Many children are visual learners; those under the age of eight or nine might have an especially difficult time with abstract money concepts. Visual representations can help. A jar that allows children to see the way money grows can help them see (and experience the excitement of) the value of saving. My son still likes to see how money stacks up in his jar.
You can also make visualizations of goals. When my son was saving up for a specific toy, we made a chart, with squares representing each week of allowance (after church donations and savings were taken out, of course). At the end of the row of squares was a picture of the toy, cut from an advertisement. He loved coloring in the squares, and seeing how quickly he could get his new toy.
I wrote this essay for your children and grandchildren.
You’ve probably heard about America’s huge debt load. The U.S. government’s financial obligations now exceed $663,000 per American family. This burden will fall on the youngest Americans.
It’s unethical. It’s unfortunate. But it’s the reality.
With this giant financial obligation bearing down on them, it’s critical that now – right now – your children and grandchildren learn about money and finance. They need to know the basic principles… like how to be independent, why debt is dangerous, and how to grow money.
I’m a sucker for tradition. Actually, I am a fan of nostalgia – things that make you warm and gooey and bring you back to the days of your youth. When it comes to issues of personal finance, however, nothing I was taught (even the more “traditional” lessons) really panned out for me. While I’m a big believer in balancing the budget, following the law, and doing your share, I won’t teach my kids money lessons that are popular simply because they are old. Here are a few examples of lessons that are still being handed down from generation to generation – but that really need to stop.
“Be a Company Man”
There are two problems with this lesson. First, there are no company “men”. Just as many women are pulling down a fair wage in today’s economy, and the occasional guy who spouts this lesson may also still think “women shouldn’t be in the workplace”. The second issue I have with this is becoming more obvious in this current economy. Companies try to take care of workers, but they can only do so much. Be a family man. Be a man of truth. Be a funny man. But don’t ever base your identity solely on the corporation who signs your checks.
In conjunction with World Children’s Day, Hartamas Shopping Centre (HSC) and Yuber, which provides child training services, organised the Kids Marketplace recently to encourage the entrepreneurial spirit in youths.
The highlights at Kids Marketplace included the Kids Entrepreneurship contest, Cashflow 101 for Kids Challenge, workshops by Yuber and a green bazaar.
A total of 39 teams comprising 78 youngsters participated in the Kids Entrepreneurship contest for the chance to win holiday packages, Yuber scholarships and the grand prize of an Asus Notebook.
Participants who were grouped under the junior (aged 8-12) and senior (aged 13-18) categories competed for the Best Display, Most Creative and the Most Promising Young Entrepreneur Awards.
The Most Promising Young Entrepreneur, in particular, were judged based on creativity and leadership skills, as well as the ability to make the most profit from an undertaking.
With the right lessons and planning, your kids, as they grow older, may be able to avoid money traps like getting deep in debt from those alluring but deceptive credit card offers—and embrace sound strategies as they save for big purchases such as graduate school, car, and a home.
Here are some golden rules about money to pass along to your children.
1. A penny saved is a penny earned.
Parents can start teaching kids about earning money as early as elementary school, Silverman says. Set a weekly or monthly allowance for chores done around the house, and offer extra for helping neighbors and performing other tasks. “Allowance should not be seen as an entitlement; it should teach responsibility,” Silverman says.
Then show your kids how to split their earnings into four money jars: for saving, spending, giving, and taxes. While younger children may not necessarily owe Uncle Sam a portion of their earnings, an awareness of taxes can be useful. “As they get older and get into the workforce, they’ll find that what they earn and take home are two different things,” she says of the importance of setting aside tax funds.
Did you like this post? Then you might find these also interesting:
