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| Teaching Kids Age-Appropriate Lessons About Money |
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While parents may want to protect their children from certain aspects of the recession, important lessons can be learned. To transform this negative subject into something more positive for children, try these ideas for teaching kids about money: Ages two to five Getting acquainted with coin money - If your toddler or preschooler does not have a piggy bank, buy an inexpensive one. Teach your child which coins are pennies, nickels, dimes and quarters as you deposit them into the piggy bank together. Ages six to eleven Using money means using math - Simple addition and subtraction are essential lessons for using and changing money. Have your child empty her piggy bank and loose change jars onto the kitchen table and add up all the money. Roll the coins and take her to the local bank to exchange her coins for paper currency. Open a savings account - With the money your child saved in her piggy bank, open a savings account for her so she can learn about interest. Money doesn't grow on trees - explain why you and/or your spouse have a job. During these tough economic times, maybe dad has had to take a second job, or maybe mom has had to go back to work after being a stay-at-home mom for years. Ages twelve and up More math - reinforcing math skills is always a good idea. Teach your child how to change money by practicing at home. Start off with easy exercises for making change, ie: here is a twenty for a fifteen dollar item. Gradually work your way to more difficult exercises, ie: here is a 20 for a $13.69 item. We work hard for our money - Suggest to your child that they find ways to earn money rather than depend on an allowance. Ask a friend or neighbor if there are any small jobs your younger child can do, such as raking leaves, to earn a few bucks. For older kids, a part-time job is a good idea as long as it does not interfere with school and activities. Earning money by working hard teaches kids responsibility, work ethic, and the importance of saving and making a living. Investing for the future - Teaching kids about making short- and long-term investments is important for looking ahead to saving up for a car, college and even more grown-up things such as a house and retirement. Whatever the age of your child and whatever your financial situation, the recession is a critical time to keep your kids educated about money so that they are less inclined to experience unnecessary worry over what mom and dad are going through. Keep it lighthearted and interesting, and you may be surprised at their willingness to learn. Darby Herrington |