William Penn Life, 2001 (36. évfolyam, 1-12. szám)
2001-05-01 / 5. szám
How to teach your child good money management from MoneyMentors.net Money management lessons for kids should obviously differ depending on the child's age. Your 17 year old certainly knows the difference between a quarter and a dime, while your four year old might not. And when is the best time to introduce certain money concepts like saving and compound interest? With this in mind, we offer the following advice so that you may get a better grasp on what our kids can and cannot andle in the world of money. Many of the suggestions for older children presume that you have been teaching your children good money management skills since they were young children. Don't despair if you haven't. You'll just need to adjust some of the suggestions to fit your child's abilities and spending/savings tendencies. AGES 4-6 • Show your children the different coins and paper currency we use and explain to them the value of each. Many young children mistakenly believe that a nickel is worth more than a dime because the nickel is bigger. Have them count and sort change and bills. • Start your kids on a weekly allowance, even if you just give them three quarters and have them put each one into a separate jar (one each for savings, spending and charity). • Take them to the store to pick out a special treat. Make it something that will only take about two weeks for them to save up for. After they have saved up the necessary amount of money for the treat, take them to the store to buy it. • Have them help you clip coupons from the newspaper. They can help you figure out how much you have saved. Put the savings in a jar in a conspicuous place so they can watch the savings grow. After it has grown, let them help decide how to spend the money as a family. • When they watch you use plastic or write a check, make sure you explain that you have to have money in the account in order to write the check or that you will have to pay the credit card bill in full when it comes. Take them to the bank with you so they can see you put money into the account or pay the credit card bill. • When you are watching television with your child, talk about the messages about money sent your way from the commercials and even the shows themselves. Help them see that what you see on television is often far from reality. AGES 7-9 • Increase the number of items for which your kids are responsible out of their allowances. Have them contribute to Girl Scout dues, dance lessons or the purchase of certain toys. Make sure you have helped them set up a budget. • Give them an opportunity to earn additional money by posting a list of household jobs which are worth extra money. Limit the number they can do each week. • Start explaining more complex financial issues, such as credit cards, certificates of deposit, compound interest and the stock market. These things really can be explained in very simple terms. Money Mentors publishes a bi-weekly e-newsletter that offers a column to help you discuss these things in terms your kids will understand. • Open a savings account for your child. Make regular trips to the bank to deposit your child's long term savings. Show them how to balance the account, pointing out the interest which is accumulating. • Have them help you find the best deals in the grocery store. They'll need to consider price per unit, instore discounts and the coupons you clipped. They should also help you with the grocery budget before you get to the store so they can make sure you 4 Hilliain Penn l.ilr. May 2001
