Raising Financially Responsible Children
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Lessons in Personal Finance
The answer to that question is no. The education system will teach our children how to read, write and handle a calculator. There are lessons on cultural awareness, personal hygiene, and physical fitness, but the curriculum does not cover personal finance. Teaching children how to handle their money, and grow into financial savvy adults falls on the parent's shoulders.
Parents that were taught as children how to handle their money have the necessary skills to pass on to their children. For the rest of us ...
Contents at a Glance
Money Doesn't Grow on Trees
My Experience
I grew up staring poverty in the face. I never learned how to handle money because there was no money to handle. As a young adult I learned, sometimes painfully, but I finally figured it out. I still make mistakes but that's a story for another day ...When my children were young, I didn't think about teaching them how to handle money. It was a skill they needed but Charlie was only six and Gregory four. I had plenty of time.
It wasn't until I caught my six year-old planting money in the backyard that I knew it was time for the lessons to begin. My father-in-law, who was visiting at the time, told Charlie that money grew on trees. Charlie wasn't happy once he learned the truth.
When to Start
The perfect time to start teaching your child about money is when they start noticing it. They learn fairly fast (almost magically) that money can be used to buy lots of neat stuff. Where does the money come from? That's easy. If Mama doesn't have enough money in her purse, or Daddy's wallet is empty, you go to the machine and get some more.
If you do not help them make the connection between work and money, you might as well tell them to plant a money tree.
Raising Money Smart Kids
Raising Money Smart Kids: What They Need to Know about Money and How to Tell Them (Kiplinger's Personal Finance)
Amazon Price: $17.05 (as of 07/05/2009)
Today's children have more money than we ever dreamed of. Teaching them how to handle money and save is not an easy task, but one every parent faces. Raising Money Smart Kids makes it easier for the parents to explain, and the child to understand. With a little help from the experts we can raise money savvy children in uncertain financial times.
Simple concepts can be taught as soon as the child learns to count.
Teach Them to Save
Set up an allowance. Even a small child will look forward to and appreciate "payday". Whether the allowance comes free of stings or is earned is a personal decision. Some parents feel that it should be earned while other feel that children should learn to do their fair share of household chores without a monetary value attached to it. My children had chores. It had nothing to do with their allowance.How much allowance is appropriate and how much can be spent verses saved depends on age and personal choice. Those decisions can always be renegotiated as your child grows.
Start with a piggy bank when they are younger and graduate to a savings account once your child is old enough to understand simple interest.
Don't assume your job is done after explaining a concept once. It needs to be reinforced over and over again, in difference situations and circumstances
Money Sense for Kids
Money Sense for Kids
Amazon Price: $10.19 (as of 07/05/2009)
Money Sense for Kids uses amusing case studies and entertaining activities to help children develop the financial savvy to be smart consumers and wise investors. It is an excellent resource for budding entrepreneurs.
Allow them to make spending decisions with thier money.(within reason.)
Show them how to do comparison shopping.
Help them set up a budget.
The Everything Kids Money Book
The Everything Kids' Money Book: From Saving to Spending to Investing - Learn All About Money! (Everything Kids Series)
Amazon Price: (as of 07/05/2009)
The Everything Kids Money Book covers the history of money as well as personal finance and investing.
Children learn by example. Be sure you're setting a good one.
As your children get older:
Be sure to explain the hidden cost of the buy now and pay later philosophy.
To use credit cards with caution.
Make sure they know how to write a check and track debit card purchases.
Who Should be Responsible?
Do you feel the schools should be teaching personal finance or should it be left up to the parents?
Fetching blurbs now... please stand byThey teach sex ed so why not personal finance?
mulberry says:
I think families should, but darned, there are so many adults who don't know how to handle money...
Posted June 26, 2009
Survival_Food says:
Schools and parents should both be teaching their children about good money habits and personal responsibility. Personal finance, such as Financial Peace Jr., should be a required class in high school.
Posted June 26, 2009
LakeMom says:
A little bit of both! With today's economy, everyone needs some financial literacy education. Parents can teach their children, but they may have them making some of the same bad mistakes that have them in trouble now. The schools can help turn the tide and help get this country on the road to financial security. At least have a course in high school - this is really when the spending/saving begins and the kids "get it".
Posted March 09, 2009
lisadh says:
Both. Parents are ultimately responsible for their kids' education, but learning how to manage money is more important in the long run than learning about, say, Greek mythology. So I think it should be taught in schools.
Posted December 02, 2008
No. The schools are already taking on too many of the parent's responsibilities.
totalhealth says:
different families have different financial status so i think its really the parents duties to teach their children based on example.
Posted May 29, 2009
naturegirl7 says:
As a retired teacher / school librarian, I can tell you that teachers already have too much on their plates. It is the parents' responsibility to teach such concepts and it should be done at an early age.
Posted December 16, 2008
poutine says:
I think it's primarly the duties of the parents to teach
their children how to deal with money.
Posted December 07, 2008
Susan52 says:
Parents should teach directly but also by example. There are excellent materials available to help. Even if parents and children have to learn together (because too many adults don't know much about personal finances), that's okay. Everyone will be much happier and less stressed in the long run.
Posted November 29, 2008
aj2008 says:
By the time any government gets around to deciding what should go into a "national curriculum for handling money" yet another generation will have grown up clueless. It has to be the parents' responsibility. Taking that responsibility may teach them a thing or two as well!
Posted November 26, 2008
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Are you financially savvy?
enslavedbyfaeries wrote...
I had a proud moment last night when my 13 year old daughter was packing for her school expedition to San Diego. She earned every penny of the $470 for this trip herself and she was telling me how she was the only student who was paying their own way. Hearing this, I felt a knot in my stomach because I know it's hard for kids when their families are struggling just to provide the basics as we are, but it was just the opposite. She was beaming with pride! She was so proud that she had worked hard and saved over the past year to earn this trip and I know that she'll appreciate it all the more knowing that. Even though we don't have a lot of money, it feels great to know that our children can still learn to be responsible and hopefully be better off than we are one day. A wonderful lens, as always. :)
Posted May 18, 2009
CCB wrote...
We tried to raise our kids responsibly. I think we succeeded.
Great lens
CCB
Posted December 28, 2008
naturegirl7 wrote...
Good lesson. My parents started us out when we were 4-5 years old and the lessons continued on through young adulthood. Thanks for visiting our Angel Crafts for Christmas lens.
Posted December 16, 2008
About the Author
Lensmaster ElizabethJeanAllen, aka Lizzy Jean, has been a member since March 16 2008, has rated 3,690 lenses, favorited 454, and has created 165 lenses from scratch. Lizzy Jean donates their royalties to Squidoo Charity Fund. This member's top-ranked page is "The Mallard Duck". See all my lenses
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