Teaching Kids About Money AND Saving for Yourself

Here are a few great ways you can not only save some money this month but also start teaching kids about money management. Include your kids on your plans for cuttings costs for the month and have them help out with keeping track of money girl.

1.    Check your cable and cell phone bill. There may be subscriptions you are paying for each month that are not used too often. Sit down with your kids and discuss where you can save on some of these costs.

2.    If you stop for coffee in the morning, cutting out that $5 latte may be another great way to show kids how making little changes can really add up.

3.    Make the grocery list with the kids involved and stick to that list when you go shopping. Have your kids look through the weekly coupons to try to cut down on food expenses.

4.    De-clutter your home and earn some by selling things on eBay or holding a yard sale. Get the kids involved and encourage them to let go of things they rarely use.

5.    Give your kids age appropriate research projects to find new ways to make your home more energy efficient. Discuss with them the global implications of wasting energy as well as the hit to the household budget it creates.

Teaching kids about money should start as early as they can have a conversation with you about it. Don't stop instilling your core values and ideals around finances and encourage your kids to develop their own values. A quality financial education must begin at home.

Read More

Kids and Money Series - Learning Goals for Ages 14 to 18

For the last article in our 'kids and money series' we'll finish off with the high school ages. These kids are not to be taken lightly! They are developing their own sets of values and opinions. Tread with caution, lol, but keep instilling your core financial values as they turn the corner into adulthood.

•    Get a job. Now is the time for your kids to start earning money of their own. Whether it's flipping burgers or selling magazines door to door, a job will help them develop a sense of independence and responsibility.

•    Start their own business. Believe it or not there are plenty of teens making their own money through their own businesses. The internet is teeming with success stories and we'll discuss many of them here on this blog. In today's economy, it pays to be self employed. Gone are the days of job security and pension plans.

•    It's time to get serious about teaching your kids investment strategies and wealth building systems. Discuss what's going on in today's economy and where the real opportunities lie. Make sure your kids understand that, no matter what the market is doing, there is always a way to build real wealth.

Keep the conversation going at alls times with kids and money skills. They're never too young or too old to begin learning about finances, wealth building and the economy. Don't wait for them to learn these things in school, sadly it is rare that a child receives any form of financial education in today's systems.

Read More

Kids and Money Series - Learning Goals for Ages 11 to 13

As our children get older, especially as they enter middle school, they should be having increasing responsibilities around money. Kids and money management don't always go hand in hand at this stage. Use these milestones to ensure they are getting the financial education they need at their ages.

•    Encourage your kids to have money goals and help them keep track of their successes. Plan for a day trip for the family to a place your pre-teen wants to visit and create a budget with goals for that event.

•    Teach your kids about investing versus savings. Expose them to tangible and fun investments like coin collecting as a way to encourage learning about money growth and wealth building strategies.

•    Foster an appreciation for an entrepreneurial spirit. Have your kids look up young, successful entrepreneurs to share their stories with the rest of the family. Discuss what types of self-employment your child may be interested in pursuing to open the doors of possibility to them at their impressionable age.

•    Don't forget to include charity in your kids and money education plans. Whether it's paying tithes to your place of worship or volunteering at your local nursing home, discovering the true value of what is really important in life should be included in everyone's financial education.

Read More

Kids and Money Series - Learning Goals for Ages 6 to 10

In this series we'll discuss kids and money learning milestones for different stages of development. For kids ages 6 to 10, as they begin to outgrow the fairytales and myths of early childhood and are ready to begin learning the realities of money.

The following milestone lessons are appropriate for this age group:

•    Be sure your child is able to identify different forms of currency (nickel, quarter, etc.) and that they understand the value of each.

•    Help your child learn how to make change and how to count exact amounts for purchases.

•    Foster a sense of responsibility with kids and money management. If your child loses their money, do not replace it. Give them the space to learn this important lesson early on to prevent irresponsibility as they get older.

•    Make sure your kids understand that things cost money. Discuss the prices of things as you shop and, when your kids asks for something, have them figure out how much it will cost and if they can afford it.

•    Consider giving your kids an allowance at this age. One dollar for every year your child is old can be a good guideline. Encourage them to develop goals for purchases and saving their own money to buy what they want. Let them enjoy the satisfaction that self-sufficiency offers.

Read More

Children and Money - What to Teach and When

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."

Read More

How Teaching Money to Children Can Help Them Build Real Wealth as Adults

As a father of two great kids who keep me very busy, teaching money to children did not use to be high on my list of priorities. I mean, there was teaching them how to cross the street, to eat their vegetables at dinner and what to do in case of a fire. These things seemed urgent. Money matters, not so much.

Until, that is, I read Robert Kiyosaki's "Rich Dad, Poor Dad." Many who know me will attest to the fact that Mr. Kiyosaki has quickly become my all-time favorite hero. His honest and inspiring story woke me up to the fact that if I didn't start educating my kids about money now, they would stand little chance of ever succeeding as adults.

In his book, Mr. Kiyosaki explains the difference between the two Dads he had in his life growing up. His own father was a hardworking man who believed in saving pennies and staying out of debt. Along with his mother, Robert's father encouraged him to go to college, get a degree and work hard all his life just as they had.

However, in a fortunate twist of fate (pun intended), Robert was exposed on an almost daily basis to his best friend's father who happened to be a self-made millionaire. Robert's friend's Dad, or his Rich Dad, knew the values of giving kids financial education and took time every day to explain to Robert and his friend how to use debt to build real wealth.

Robert learned the true risks involved in saving versus investing and how truly wealthy people understand the difference between good debt and bad debt.

I'm eternally grateful for Mr. Kiyosaki's willingness to share his life experience with me. It has drastically changed not only how I handle my own finances but how I approach teaching money to children in my household.

Read More

How Christmas Art Projects for Kids Can Teach Them the Real Value in Giving

One of the keys to a quality financial education is teaching generosity and charity and there's never a better time than Christmas to explore some of these values. No matter what their ages, setting aside some Christmas art projects for kids can teach them that it really is the "thought that counts."

Today's economy is certainly not going to support an extravagant Christmas for many people around the globe. Yesterday's mob-like consumerism is likely to be met this year with frugal shopping and creative (free) gift-giving.

Kids are especially in tune with the Christmas season. The television and computer pummel our children with ads all year round, but even more so during the holidays. Consider an alternative lesson to all that advertising and set up a group of Christmas art projects for kids that they can make to give as gifts for other family members.

Contact local nursing homes in your area and see if they organize Christmas craft events for their residents. If they do, ask them if you and the kids can come along and help out. The elderly residents will be thrilled to see children running around during the craft-making and your kids can certainly learn a lot from them.

For older kids, encourage them to make some Christmas art projects for kids and sell them to family, friends and school mates to raise money for a charity of their choosing. Not only does this encourage generosity, it can give your child their first glimpse at entrepreneurship! What a great gift that would be.

Read More