How To Teach Kids About Money. A Step By Step Guide For Teaching Young People How to Handle Money Responsibly
Chester, MD (PRWEB) August 21, 2008
Look at the news today. The down economy is only part of the story. How are people managing their money?
So many teens, college students, and adults are in debt and having financial difficulties…and have had them for a long time. Why??
Is education the answer? According to author Lilly Lodge's experience, the answer is a resounding Yes! The trick is to incorporate the learning process into every day activities while kids are growing up!
Save the next generation from suffering the same financial woes and begin teaching them today, no matter how young or old they are.
Start now and have fun with the Top 10 Ways to Teach Kids about Money:
1. Set up a family budget, whether formal or informal, and be an example to your children on how to manage money.
2. Learn to think of your family as a team, where everyone has a role but pitches in to help the group whenever necessary. Develop a sense of accomplishment.
3. Teach responsibility: Let children start helping with small family chores at 3 or 4 years old so they become an active part of the family team.
4. Use your child's allowance to teach them to manage money and to give back. Use the Three Jar Method and have your child get into the habit of setting aside 10% of their allowance for charitable giving, whether that be to your church or to a philanthropic organization, and to divide the remainder between savings and spending.
5. Before you take your Middle School or Junior High School student back-to-school shopping for clothes, have them go through the clothes they have first to determine what they can still wear and have them make a list of what they'd like to buy to complete their school wardrobe.
6. For back-to-school shopping, give your student a clothing budget number and have them do research to find the clothes they need for school that have the best look for the best price and present their findings to you for pre-buy approval.
7. Teach your High School student about budgeting by having them track ALL of their expenses - money spent on them by you and them - for a full year so they can see what the average monthly expenditures are and understand how much it costs them to live, before adding room and board.
8. With a budget in hand, let your student live on a budget for a year or two and manage their money themselves while still in Senior High School.
9. Open savings and checking accounts at the appropriate times so your kids learn how to manage bank accounts.
10. Building on their experiences, guide your young adult in developing a budget to live on after High School so they can manage a car and credit card and still have money to live.
Lilly Lodge is the author of "How To Teach Kids About Money. A Step By Step Guide For Teaching Young People How to Handle Money Responsibly".