by Rex Pe
Tomorrow they’ll understand challenges in checkbook balancing, vacation savings and donating to Santa. They will if you teach them basic economics today. Help them see how spending habits impact savings and their future.
Our friends seem to fall in two camps: In one, parents set for life and don’t focus on financial planning or retirement. In the other, parents are desperate to learn what’s best for their children (and themselves).
Having children later in life prepares us to care for a young family better than our 30-something counterparts. Unfortunately, while trying to teach basics we find we’ve never really mastered them ourselves.
Children need to learn about the dangers of purchasing beyond their means. If they can’t afford the purchase they’ll derail their savings (or yours). Have them prioritize purchases; using allowance or piggy bank. They’ll soon experience money disappearing and an inability to buy more stuff.
Check out our resource page for some great first steps.
Family Education – Money Management http://life.familyeducation.com/money-management/money-and-kids/48116.html
The Money Instructor http://www.moneyinstructor.com/art/teachchildren.asp
Money Magazine’s “Money101 http://money.cnn.com/magazines/moneymag/money101/lesson12/
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