We Are All Financial Stewards …

Teaching Children About Money

From Mindy

Halleck, author of

Romance &

Money

“Human beings have the remarkable ability to turn nothing into something. They can turn weeds into gardens and pennies into fortunes.” ~ Jim Rohn

HOW & When?

1- Are your kids old enough to keep

coins out of their mouths? Then it’s not

too early to start teaching them about the

more practical uses of money.

2- By spending just 30 minutes a week teaching

children the basic principles of money management, you

can sow the seeds of financial stewardship that will

empower them throughout their lives. You can prepare

them for adulthood in our global economy by giving them

self-confidence and a better understanding of the world

in which they live.

When?

3 - Start early. When children

are young you can introduce them to money in

fun ways.

Create math games that incorporate the basics:

five pennies equal a nickel, four quarters equal a

dollar, and so on. Be active and engaged in your

lessons. You can find a lot of ideas at www.moneyinstructor.com/games.asp or www.usmint.gov/Kids/games/.

Where To Start?

4 - Break down basic principles. Teach

one key financial principle per month.

Create a calendar and teach budgeting

one month, maintaining a savings account the

second, philanthropy the third, and so on. Children

will not become incredible money managers overnight, so

give them time. A great Web site for fundamental financial

information for kids from ages 5 to 18 is

http://www.prosperity4kids.com/.

GOALS…

5 - As with goal-setting, budgeting

instills self-discipline in handling

money.

Encourage your children and

teens to make a list of the things they

want, how much each will cost, and how much they’ll need to

save for them. Whether it’s a new pair of jeans or tuition for

driver’s ED, having a budget will help them track their

progress, restrain impulse spending and achieve their goal.

Visit the personal finance section at www.money.cnn.com

for great budgeting plans and so much more. It’s one of

my favorite money management sites.

Get real about plastic

6 - Avoid using credit and debit cards whenever possible.

As tempting as they are, plastic cards teach false

values. Children learn by example and they will

learn nothing significant about money if they

don’t see you using any. If you give yourself a

budget of $100 a week, for example, then take that

cash out of the bank, and only spend what you have

in your wallet.

Teach Them to Be Prepared

7- Show them that you have your own savings account, some cash on hand, and a reserve account. Let them know that when the stove goes out, $$$ - SOS!!!! not to worry because you have the money to replace it without having to use credit. Witnessing firsthand the importance of keeping emergency funds available will teach children the value of saving and preparing for unexpected expenses, like a broken skateboard wheel, – which is, of course, totally devastating.

 

Sometimes It Hurts

8- Let them blow it.

When your children get into

financial trouble, the worst thing you can do is

pick up the tab. If they have to suffer the

consequences that result from carelessness or

impulse buying, they will learn from these

mistakes and, hopefully, make more conscious

choices in the future.

Finally, as parents, we must recognize that passing on a healthy relationship with money is

important to our children’s future and peace of mind. Money problems can occur when

financial management skills are never addressed. Commit to teaching your children these

skills and discussing them for at least 30 minutes once a week. If you’ve trained them well,

your teens won’t see the credit card offers arriving in the mail as a means to instant

gratification. Teaching your children about money, as well as credit, can be a fun

experience, but most important, a priceless lesson. We are all financial stewards. The fate

of the next generation is in our hands. Start planting now and watch the seeds of

responsibility grow. To read the full We Are Financial Stewards article, please visit

Romanceandmoney.wordpress.com

Thank you.

Mindy Halleck

From Mindy Halleck,

author of

Romance & Money