23 Ways to Make Your Kids More Money Savvy

 While surfing the net, I found this interesting article on how to make kids more financial savvy. Others might not subscribe to the idea of teaching their kids about money, but I think, not teaching them about it is preparing their for a disastrous future.  If you love your kids, try reading this article.  

Note: these tips are applicable for adults too ^_^

23 Ways to Make Your Kids More Money Savvy

1. Help your kids make a list of money makers (bonds, mutual funds, etc.) and money losers (those really nifty sunglasses you never wear).
2. Teach your child to make a pros/cons list before spending money on an expensive item.
3. Ask your kid to think about something he recently bought that he really wanted. What were his feelings about the item before he bought it, and what his your feelings two weeks later? Was it worth the money?
   
4. Ask your kids what interests them about money? What bores them about handling, saving, or spending money?
5. Discuss an emergency fund of money and the reasons it’s important. How could kids benefit from starting an emergency fund of money ?
6. Would you take out a loan for a pair of jeans? If you buy jeans with a credit card and don’t pay off the balance each month, that’s what you’re doing.
7. Have your kids collect letters of recommendation from their babysitting, lawn mowing, pet sitting or other jobs. They’ll come in handy when putting together college portfolios.
8. Have regular conversations about money skills and financial literacy – what is it, why do we need it, how do we get it, where do we keep it, how does it relate to the things that are important to us?
9. Ask your kids…does a free kitten come with hidden expenses? If so, what are they?
10. Make financial literacy fun by teaching money trivia along with money skills! For instance, the dollar bill lasts 21 months before it wears out. The five dollar bill has the shortest life, at 16 months.
11. As an incentive to save money, match your child’s savings dollar for dollar…or fifty cents for each dollar saved.
12. What is your best money habit? Share it with your kids.
13. Discuss with your kids some things money can’t buy.
14. Discuss with your kids which is more important…buying a video game or paying back lunch money borrowed from a friend.
15. Discuss with your kids the advantages and disadvantages of saving money.
16. Create a list of Above-and-Beyond Jobs your kids can do to earn extra money.
17. Kids LOVE to have their own savings account; it makes them feel “grown-up.” If you child doesn’t have one yet, take time to open one…and consider seeding it with a few dollars. This is a great way to get them in the healthy habit of saving and thinking about achieving financial goals.
18. Do your kids want fancy designer labels? Have them pay the difference between what you’re willing to pay and the cost of the designer label.
19. Teach your tween/teen how to fill out a check by having them write the next one.
20. Give your 6-8 yr old $2 and your 9-13 yr old $5. If your 6-8 yr old still has it after a week and your 9-13 has it after two weeks, double their money. Great delayed gratification practice!
21. Discuss being rich in compassion, understanding, empathy, friends, knowledge… How can we use money to help us show these things we value?
22. Talk about a financial goal you set and the steps you took to achieve it. Then have your kids create their own money goals.
23. Discuss needs versus wants with your kids.

 **–**            

Though some might raise the point that money is losing its value as time goes by, and that we should rather invest the money we save;

“Your kids will save all of this money and the dollar will completely be debased in a few years, and they will have literrally nothing to show for it.”

I agree that investing is better than saving.  But learning the importance of money through saving is the first step in financial literacy.  Let’s teach our kids on how to save first, then when the right time comes, teach them how to invest.

Another notable comment on the subject was made by Barffp

Thanks for such a precious, priceless article!!! I have said before, that, we need a BIG reform in our education system to help mankind rise a wise generation ! Unless we teach our children at home about values and living wisely with our example, they get out of our schools with a diploma to “show up” only,and not prepared to live at all! Immature and insecure beings! Growing old but never growing up! Failing in their marriage, in society, in life lived with a right purpose! IT should be mandatory in our schools curriculum, courses on “schooling our feelings”, or anger management, “good nutrition”, “Higiene”, “manners or social relations”, “home economics’, “money manegement/finaces/banking/savings/frugality, “understanding of politics process/importance of the vote”, “marriage/parenting/ problems solving skills”. Without these things been really understood and lived, no matter what degree they get or where, they are not educated! They will have a very poor self steam, and will end up with a very unhappy life!!!!

 Now, do you think it’s about time to teach the kids money matters?

*posted by Laurie PK in Shine from Yahoo

*Lauri PK is a full-time writer and blogger who created and maintains “Quips and Tips” blogs

**Photo lifted from http://www.babble.com/CS/blogs/strollerderby/archive/tags/debt/default.aspx

***Written by Karyn Hodgens

***About the author

Karyn Hodgens is a Kids Personal Finance Educator, author, and creator of KidsSave, a kids’ money management software program.  Her passion is to educate parents on the importance of teaching kids financial literacy.