Teach Your Child the Value of Money! 

To give your children a huge start in life teach them smart money habits.  A recent survey of high school students revealed that about 88% of the kids surveyed learned about finances from their parents.  You may feel a little uneasy about this parenting task.  After all, you may not be all that confident about your own money management skills.  But you probably know more than you think you do, and you will play a critical role in shaping your children's attitude toward money.  When do you start? As soon as the child can count and begin to distinguish between coins.

The following excerpt is paraphrased from an article by Jill Gianola.

Toddlers and Preschool - At this age, children they can sort coins, learn their value and begin to understand how money gets converted into things.  Stowers Innovations has a free activity book called "Yes, We Can! Understand Money".  They will mail it to your house by calling 1-800-234-3445.  It is an excellent workbook for your child.

5 - 7 year olds - At this age, children can start receiving an allowance.  The goal is to give your child the opportunity to budget, spend and save his own money.  You should not link the allowance to chores or grades.  Extra money for special jobs is fine.  

You can encourage savings by dividing the allowance among three jars. Money in jar 1 can be spent on whatever the child chooses.  Jar 2 money is saved for a more expensive item, like a toy or book.  Jar 3 is reserved for long-term savings, such as a college fund.  I recommend matching the money and paying interest even if it is a few pennies.  Children are fascinated when money makes money.

8 - 10 year olds - Make a trip to the bank to open a savings account.  Let your child fill out the deposit slip, and explain that the bank will pay interest.

Include your child in family discussions of finances, such as budgeting and planning for family vacations.  Teach about budgeting, trade-offs and your family's values.

11 - 13 year olds - If your child shows interest in the stock market, choose a few stocks and follow them for a few months.  If the child has earned income from a paper route or baby-sitting, for example, she can set up a Roth IRA that will accumulate a tax-free retirement nest egg.  A $1,000.00 investment at age 12 can grow to over $150,000 at age 65.

Read the following book it will change the way you think about money:

This book was one of the most fascinating books I have ever read.  I recommend it to everyone not just people with children.  It is a real eye opener.  Robert T. Kiyosaki had two fathers one poor and the other rich and both had two different philosophies about money.  He and a friend of his asked his rich father to educate them on how to make money when they were 9 years old.  He has been teaching them for 35 years.   His rich father became the richest man in Hawaii.  Robert T. Kiyosaki became a millionaire real estate tycoon and his friend became a billionaire.  Once you pick up this book you will not be able to put it down.  

You can purchase this book at your local book store for about $11.00  or read it at a local library.  It is a best seller.  In fact you can join UPROMISE and then purchase this book from either Borders or Waldenbooks and save even more money!