How can we teach our kids early about managing money?

Here we will talk about our efforts to improve financial literacy in our communities.

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Re: How can we teach our kids early about managing money?

Postby muso » Sun Sep 02, 2012 7:02 am

If you are good at managing your finances, then you should lead your child by example. Maybe what you can do is you can start by not giving extra money if your child finishes her/his pocket money for the day? Then they will learn the importance of saving up and not to splurge anyhow they want.
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Re: How can we teach our kids early about managing money?

Postby fathappycows » Thu Nov 15, 2012 7:11 pm

As a child, I loved games, and I think that we underestimate the educational benefits of games as adults. I used to play Lemonade Stand for hours on the computer and really got into the process of ordering, marketing and distribution through that game. I also loved puzzles and card games which has been invaluable for problem solving as an adult. As a teacher of mathematics I used games like Yahtzee and variations of Bingo to get kids to do multiplication and addition. And getting kids to develop their own games was a great exercise for learning compound interest and taxation.

I agree that we need more resources to teach kids about money. It frustrated me that there were only limited units on this in Mathematics and only for select kids. For that reason I am writing a series of books to help students learn about personal finance and to give parents something to refer to that is written for teens.

You can see more suggestions on my blog and access my books here:

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Re: How can we teach our kids early about managing money?

Postby believersbelieve » Sat May 18, 2013 4:19 am

Teaching kids about financial stuffs right from their school time is essentially crucial as they will learn the value of money and manage their time between studies and making money well. These kids can learn multitasking fast and make better people as they grow up, becoming independent adults

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Re: How can we teach our kids early about managing money?

Postby wendyjames2 » Wed Jul 31, 2013 9:07 am

I was raised to understand the value of money. Like any other practical skill in life - teaching kids early about managing money is very important. Kids should realize that money is given to them is hard earned money.

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Re: How can we teach our kids early about managing money?

Postby VinTek » Thu Aug 15, 2013 1:13 pm

T Rowe Price has just started a new Web site teaching financial literacy to kids. There are sections for teachers, parents and kids; you don't have to be a T Rowe Price client to use it. The kids' section includes financial games that were developed with Disney.

Money Confident Kids

Frankly, I know a few adults that could benefit from this site, never mind kids.

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Re: How can we teach our kids early about managing money?

Postby FaaastCash_ » Fri Aug 16, 2013 2:06 am

Kids of today don’t need to understand how money can be spent, but they need to know how money works.
For parents to have a kid who is money-wise is a boon because it makes those save or splurge decisions easier to handle. There’s no right age for having that money talk with your kids. If he or she can spend or borrow, they sure can learn to save and invest.

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Re: How can we teach our kids early about managing money?

Postby masud12 » Sat Jan 18, 2014 11:05 am

Should be you great at coping with your financial plans, then you must direct your kid through example. Probably your skill is you can begin through not necessarily giving extra cash should your kid completes her/his pocket income for the day.

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Re: How can we teach our kids early about managing money?

Postby kaufenpreis » Tue May 13, 2014 7:21 am

Believe it or not, you and others are already teaching your children about money. Their meaning of money starts before they begin handling it. From their early experiences, children slowly build their attitudes and knowledge about money. Children's influences - family members, friends, neighbors, television - all factor in to what they learn about money. But the most powerful influence is the family.

A marketing professor at Texas A&M, Dr. J. McNeal, studied how children under the age of twelve learn to use money. His research showed that how well children spend their money has little to do with the amount of allowance they receive. It has more to do with their parents' behaviors. "There is a very clear relationship," McNeal said. "If the parents are wise consumers, the children become wise consumers."

Children can learn about managing money at different ages. Their early years provide the foundation for learning. Before children enter school, their concepts of numbers and time are limited. Yet they are curious about the process of buying and selling. Some activities they like are: setting up a play store at home with play money and empty food containers, helping to make purchasing choices at the grocery store, and saving coins in a piggy bank.

School-age children can: buy grocery items for the family such as milk and bread, open a savings account, and receive a regular allowance. An allowance is an important way kids can learn basic money management skills. It helps them learn to budget and make good spending decisions. Be consistent with the allowance. Children can also do small jobs for family and friends to earn extra money.

The allowance amount varies by children's ages. The timetable for receiving allowance expands as children get older. For small children, once or twice a week works best. Older school-age children can receive their allowance once a week; teens can receive it twice-monthly. If your children overspend, don't hand over more money. Parents who consistently give their children money are doing them a disservice. Kids who squander their allowance can learn from their small mistakes.

Teenagers are capable of longer term planning, such as saving for a future trip. They should become informed on the effective use of banking services, investments, and insurance. Although earning money will become more important to teens, it should not interfere with their schoolwork and education.

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Re: How can we teach our kids early about managing money?

Postby dailycheaptips » Sat Aug 16, 2014 3:07 pm

I love the idea of a money jar for kids. They can each have their own, and put in all the loose change they find or have.
To teach them how to count, you can have them put different value coins in separate jars (1 for quarters, one for dimes...). Then, once a month, you can get coin rollers at the bank and have them make coin rolls and count how much they have. Then you can take them to the bank to deposit their money in their bank account :D

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Re: How can we teach our kids early about managing money?

Postby kaufenpreis » Wed Aug 20, 2014 3:10 pm

I always saved some money for all of my children. Always take them with me shopping so I tell them how much (cash) I have to spend, what we need (they make the shopping list as well) and if we can afford what is in the shop. they are great in counting/saving. To them it also doesn't matter if they buy something for themselves (which they seldom do) or the shoppings. They know what to buy and what not and can look for the cheaper stuff. They seldom had pocket money. The youngest have but mostly save it. The eldery childeren went working at a certain time and had to pay for a part of their schoolstuff themselves so they also know how much money they have to spend, what they need and where to buy it. I don't think there is a special way to teach childeren. Some will never learn it, esp if they are very vunerable for what others have, want to join the club/clique they will keep spending even as adults. Most adults are not able to manage the money they have well, so do not expect this from your children if you are one of them. The best thing is to work with cash. No bankcards, creditcards, loans.

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Re: How can we teach our kids early about managing money?

Postby Eagle » Thu Sep 04, 2014 7:57 pm

One way to teach kids about managing money is through board games.

Payday, Cashflow for kids, the Allowance Game might be fun for you and your kids to play.

Allowance Game 5+
Wash the car to earn $1.30...but forget your homework and lose a turn! In our involving, skill-building game, players race around the game board doing chores to earn their allowance...then save it or spend it on things they want. And, as children play, they learn to make change, handle money and more! The game board measures a big 18". For 2-4 players.
•Our fast-paced game is perfect for learning how to handle money, make change & more
•Fun-filled activity turns learning into a game
•Perfect for teaching kids to identify money values, add & subtract money and more
•For ages 5-11 years

Payday 8 - 12 years
The classic game of making and spending money! You'll make money every month, but you might spend it just as fast.
•Game board, 4 mover tokens, 1 red die
•64 deal & mail cards, savings & loan pad, money, rules
•Fundamentals of budgeting
•Fosters an entrepreneurial spirit

Act Your Wage by Dave Ramsey
*2-4 players
*This game is a great tool for kids and a good conversation starter for adults. Players Spend, Save, and Give through income and expenses of everyday living. Try to avoid the “Stupid Tax!”
In Act Your Wage each player has to:
- Earn and keep a $1,000 emergency fund
- Use the envelope budgeting system
- Pay off debt using the debt snowball
- Be the first one to get out of debt and yell, "I'm Debt FREE!"

Here's a description of regular Cash Flow 101 (Cash Flow for Kids ages 10+, the adult version is 14+):
The Board Game USA Today Calls \"Monopoly on Steroids\" has been updated in 2012 with improved colors and graphics and better instructions so that your learning experience can be the best possible. It's Time to Get Out of the Rat Race. What's your dream? Freedom of time? Unlimited resources to travel the world? Whatever it may be, CASHFLOW 101 teaches you how to get out of the Rat Race and onto the Fast Track, how to make your money work for you – not the other way around. CASHFLOW 101 is an educational board game that simulates real life financial strategies and situations. As a simulation, you learn valuable lessons and gain priceless insights into personal finance and investing without having to put your actual money at risk. Developed by Robert Kiyosaki, author of the #1 personal finance book of all time, Rich Dad Poor Dad, CASHFLOW 101 is the ultimate realization of Robert's vision of an interactive tool for financial education, and the fulfillment of his belief that we learn best by doing. CASHFLOW 101 is an educational board game that teaches accounting, finance, and investing at the same time - and makes learning fun!

Acquire is also fun as well. You buy, sell, trade shares in companies. 12 - 16 years

•The Right Price at the Right Time -- at the Right Price!
•As a powerful real estate tycoon, there are only seven hotel chains in the world worthy of your attention. Using nothing but your wealth and wits, you must vie against other business magnates to manipulate construction and capitalize on mergers -- buying, trading, and selling stocks in order to get the greatest return on your investments.
•Acquire challenges you to pit your resources snf resolve against other players in this high-finance game of speculation and strategy!
~ Eagle

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