Teaching Kids about Money

One of the most important aspects of parenting is teaching kids about money, but I have to wonder, are parents actively teaching good money management or just letting kids learn by trial and error and observation? With the high debt rate, especially in North America, do parents even know good money management themselves?

Those struggling to get out of debt know how important it is to stay out in the first place--debt not only kills our pocketbook, but it puts pressure on our health, emotions, and marriages.

Teaching kids good money management should be a high parental priority. Good money education starting in elementary school years will give your kids a head start for when they reach adulthood and better prepare them for marriage seeing how money is a top marital problem.

http://choresandallowances.blogspot.com is a terrific site for parents to get a jump on the money and kids issue. We can even learn a little something for ourselves along the way.

One of the things we're going to do to teach our kids about money is issue an allowance based on how many days the kids stayed on level seven of the privilege ladder and give them a weekly prorated allowance accordingly. This way they get a realistic sense of earning wages.

Instead of giving money, I've made passbooks. We'll record deposits like a checkbook register. When the kids want to buy something, they have to make a withdrawal from the book for cash from the parent bank (me or Jim).

If they owe someone money for something, or want to hire a sibling to do a chore, they can withdraw it from their passbooks to deposit to another's. And if I have to do one of their chores, I make a withdrawal. But all transactions must be initialed by me or Jim for it to be valid.

Being in debt is no fun as Jim and I discovered fourteen years ago. One of the best things we can do for our kids is help them conduct their money wisely.

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Technorati Tags: family ^ parenting ^ kids ^ money ^ money management ^ finances

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