Teaching Your Kids About Money: The Basics

Teaching Your Kids About Money: The Basics

by James Mazzola
     
 
Plato said, "Let parents bequeath to their children not riches, but the spirit of reverence."

That old guy knew what he was talking about. As parents, we are not just responsible for providing food, clothing and shelter for our kids. We are also responsible for teaching them about God and life — and money is a part of life!

Parents are

Overview

Plato said, "Let parents bequeath to their children not riches, but the spirit of reverence."

That old guy knew what he was talking about. As parents, we are not just responsible for providing food, clothing and shelter for our kids. We are also responsible for teaching them about God and life — and money is a part of life!

Parents are often scared to talk to their kids about money.

Some lessons mean admitting mistakes; others signal unattainable goals. But the consequences of not imparting those lessons on your own kids could be more consequential than ever before. Unlike parents, who may have a pension and employer provided health insurance -- most children now need to understand much more than basic budgeting. Big brother does not have anyone's back anymore.

Kids will need to understand how to save for their own retirement, manage health care costs and even cope with diminished Social Security benefits. Sounds like this is jumping the gun? It is not.

Proper preparation of your children, even at a young age, can start them down the path of a successful financial life.


You should talk early and often. Children should start learning about money long before their first savings account, job or credit card. Begin the conversation even before they are in school by talking about work and money. Avoiding the subject until your child needs a bank account can make the conversation hasty and confusing.

Everyday activities are teachable moments. A trip to the grocery story is a good time to explain price comparison, value and inflation. An ATM stop offers a chance to explain that money doesn't actually come from a machine. You can discuss earned income, investment returns and even inheritance. Opening bills is a chance to talk about payment for services, credit card debt and interest rates. Children need to be taught about debt, specifically loans and credit cards. Talk about insurance with teens, especially as they learn to drive or as you're selecting what health care options are available to your family.

Product Details

ISBN-13:
2940016041391
Publisher:
James Mazzola
Publication date:
01/24/2013
Sold by:
Barnes & Noble
Format:
NOOK Book
File size:
80 KB

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