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Kids and Finance

Making sure you are financially literate is not only important for you, but also for your children.

Every day kids are learning about basic money issues somehow. Whether it’s because they want to buy toys or candies or they are willing to win a Monopoly game, kids start learning how money works and teaching them how to spend money is fundamental no matter the age.

The sooner kids start to learn about money, the better! Not only because they will be better prepared for when they are adults, but also because the younger they are, the more receptive they tend to be. Once they become Teenagers, it gets usually more difficult for the parent when it comes to teaching and listening to advice.

Be sure to tell your kids how important it is to know how to handle their money carefully, like their allowance or Christmas monetary gifts. Encourage things like savings and making a budget. Find creative ways to gain their interest on these topics. An example would be to agree to buy something that they want, but only after they save certain amount of money that will also be used to buy that gift.

Educate yourself on how to teach your children. The Internet is a great tool to start looking for fun ideas and exercises. Here are some sites that we thought might be useful for revising:

Empowering Kids - For A Healthy Financial Future

Financial Literacy for Kids: Money Lesson Should Start Young

Articles and tools on how to talk to children about money, teaching children about mutual funds and money:

How to manage summer salary

Saving and Spending- Your kid doesn't like to save? Try the carrot and then the stick. Some creative ideas to encourage your kid to introduce the concept of savings in his or her life, help them set goals, Teach them about Credit and investing in their teen years.

  1. Don’t forget that kids tend to repeat the actions that they see in their environment. They see you paying bills, writing checks, making a comment related with money and going to work to earn your salary. How you manage your finances will greatly influence the type of financial manager kids will become. This is why you must understand how important it is to teach the kids about basic money issues.
  2. Once a child learns how money works, he will be more interested in everything that has to do with money. As they learn more they are expected to become more conscious and responsible with money matters.  This is a fun way to start:

Check out some cool Financial Literacy links, as well as some fun games for kids:

Kids & Money

Essential Money Skills for Kids

Bank Junior

Personal Financial Tips

  1. Pay your bills on time.
  2. Eat more at home and less out.
  3. Take your food to work.
  4. Forgo the ice cream store and pop popcorn at home.

More Financial Tips