Teaching Kids About Money
Teaching your kids about how to handle money is very important in my opinion. It is important to lead by example and demonstrate to them a smart way to handle money as they grow up. Leading by example is a start but you also need to find other ways to teach them along the way. There are plenty of free resources online that you use to teach your kids smart ways to handle money.
- The U.S. mint has a great website called HIP pocket change that teaches kids how money is made and what it looks like in different countries.
- ING Direct has a website called Planet Orange which is a really fun way to teach kids about earning, spending and saving money.
- For older kids, download a copy of Money Math: Lessons for Life which will teach them personal finance using real life examples.
- Set up a virtual bank account on Zefty.com to teach them about depositing and withdrawing money.
- Make a plan with your kids for how they are going to handle their personal money such as allowance, birthday money, etc. I like the “two box system” by Justin Ford that you can read about here. Basically any money your kids receive is divided in half with half of it going in to a box for spending and half of it going in to a box for permanent savings.
Do you have a system that you have found works well for your family or do you have some tips on teaching kids about money you would like to share? Feel free to comment and share them with us all.