While some experts suggest we start teaching kids about money as soon as they learn to speak, there are some concepts that are too abstract for children under age 7 to grasp. However, the sooner we begin the conversation the better. Children and money might not seem to be an issue but what they learn today they'll repeat tomorrow.
Here are the four main areas of money education:
• Earning - Teaching kids about earning money involves discussing putting in the time and effort needed to make a living.
• Spending - How to spend money and what to spend it on is a very important conversation. Expose your kids to the true value in things, not their ability to impress others with possessions.
• Debt - There are two kinds of debt: debt that makes you money and debt that keeps you broke. Make sure you understand the difference before approaching your kids on this topic. Robert Kiyosaki's "Rich Dad, Poor Dad" is always where I recommend people start.
• Growth - Many people still believe in saving pennies for a rainy day. While this was a wise strategy years ago, it is no longer relevant in today's economy. Learn the basics of wealth building strategies to be able to give your kids the most effective financial education. Consider reading Mike Maloney's definitive money growth guide "Guide to Investing in Gold and Silver."
• Growth - Many people still believe in saving pennies for a rainy day. While this was a wise strategy years ago, it is no longer relevant in today's economy. Learn the basics of wealth building strategies to be able to give your kids the most effective financial education. Consider reading Mike Maloney's definitive money growth guide "Guide to Investing in Gold and Silver."
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