Article: Teaching Children About Money - Free Reprintable Article

How to teach your children about money. How many times have you wondered whether your children think money does indeed grow on trees? If you examine your spending habits, you may realize that you have not given them any reason believe that you don't have a money tree.

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Teaching Children About Money : Your Kids vs. Your Wallet

by Chemain Evans
How many times have you wondered whether your children think money does indeed grow on trees? It probably seems like every time you turn around your wallet is being attacked by the "gimme's". If you honestly examine your spending habits (and those of your kids), you may realize that you have not given them any reason believe that you don't have a money tree.

In truth, we all want things and kids are no different. How easy it is to whip out the credit card(s) and instantly gratify our desires. What message are we sending our kids?

What follows is a collection of ideas about how we can instill in our children a better understanding of money and how it works.

Establish a Savings Account and a Plan

Every child should have his own savings account even if it is just a piggy bank. Whether your child receives an allowance or works a job, establishing a savings plan is a must. Encourage your child to donate a certain amount to charity (to help them develop a lifelong habit of helping others). Then establish a certain percentage for long-term savings (such as college) and short-term savings (such as clothes, toys, etc.).

Saving for both long- and short-term goals will build a child's confidence in her ability to save and helps her learn delayed gratification. And, once the savings goal has been met, she may even discover that the money would be better spent for something else.

Finally, allot a small percentage for discretionary spending. You might find that the following percentages work well: 10% charity, 50% long-term savings, 30% short-term savings, 10% spending. Find a balance that works well for you.

Hold a Bill-Paying Night

This is a great activity to show your school-age children where your money goes. You might even learn a bit yourself.

First, assemble a list of your monthly and/or weekly expenses and their amounts. The amounts don't have to be exact. Write the expenses and their amounts on separate slips of paper. Then, add up your monthly income and use pretend money (Monopoly® money or make your own) to represent the amount.

Next, take the expense slips and give them to your children. Have them come to you and "collect their bill" one expense at a time. This is an excellent visual representation of how quickly the paychecks get depleted!

Afterward, discuss ways you can cut your spending to help stretch the paychecks for things that are really important. You might be really surprised at your children's input.

Encourage Them to Work

Even young children can do extra chores around the house or yard to earn extra money. Teenagers should be encouraged to get a job. Working helps children understand that money comes at a cost, thus dispelling the money-tree notion. Working also improves their self-esteem and you can teach them to take pride in their work.

Have a Family Savings Fund

Save as a family for large expenses like vacations. Set up a jar or box for keeping the money in and post a chart tracking your progress where family members can be reminded.

Establish Spending Limits

Establish spending limits for items like clothes and shoes. Be willing to pay so much for something, but your child must make up the difference with his own funds if he goes over the allotted amount. For example, he may want a $100 pair of shoes. You agree to pay what you normally pay (say $40) and he has to pay the rest. New school clothes take a huge bite out of the family budget; why not enlist the aid of your kids? Agree to only pay for so much and then leave the buying up to them (within reason, of course). They may surprise you with what they are able to do with their money. Encourage them to watch for sales in order to maximize their dollars.

Take Your Child Grocery Shopping

If your child can run a calculator, she can help you grocery shop. Give her a fixed amount that you will spend on groceries and have her subtract each item from the total as you shop. Teach her to compare food labels and get the best product for the money. Ask for her input about how you can reduce your overall grocery bill.

There are many ways to teach your children the value of money and help them build valuable skills. If you don't teach them, who will? So take the opportunity to call a cease-fire in the battle between your kids and your wallet and work out a compromise in which both sides win.

***************************************************************
© Simple Joe, Inc.
Chemain Evans is a quality control specialist for Simple Joe, Inc., makers of the popular Simple Joe's Expense Tracker PC software. Expense Tracker is a quick and simple way to keep track of your expenses and stay within your budget. Expense Tracker is ideal for tracking personal, business, home and club expenses.. This article may be freely distributed as long as the copyright, author's information and an active link (where possible) are included.

Note: This article may be freely distrubuted and reprinted as long as the author's information and web link are included at the bottom of the article. The web link should be active when the article is reprinted on a web site or in an email. Minor edits and alterations are acceptable so long as they do not distort or change the content of the article. For more information on reprint rights email:

Article Formatted for Email & Newsletters:

1116 Words

Title: Teaching Children About Money : Your Kids vs. Your Wallet
Author: Chemain Evans

How many times have you wondered whether your children think
money does indeed grow on trees? It probably seems like
every time you turn around your wallet is being attacked by
the "gimme's". (This takes many forms including "I want", "I
need", and "Everybody else has ….") If you honestly examine
your spending habits (and those of your kids), you may
realize that you have not given them any reason not to
believe that money is always readily available and in
abundant supply.

In truth, we all want things and kids are no different. How
easy it is to whip out the old credit card(s) to gratify our
desire for things, which is how we Americans have managed to
rack up an astounding $1 trillion dollars in just consumer
debt. What message are we really sending our kids?

The booming economic '90s have left many of us with a false
sense of financial security. Now with the economy in an
extended downturn, families are looking for ways to scale
back their expenses and teach their children the value of
money. What follows is a collection of ideas derived from
various sources about how we can instill in our children a
better understanding of money and how it works.

Establish a Savings Account and a Plan

Every child should have his own savings account, where
feasible, even if it has to be a temporary piggy bank.
Whether your child receives an allowance or works a job,
establishing a savings plan is a must.
Encourage your child to donate a certain amount to charity
(thus helping them develop a lifelong habit of helping
others). Then establish a certain percentage for long-term
savings (such as college) and short-term savings (such as
clothes, toys, sports equipment, etc.).

Saving for both long- and short-term goals can build
children's confidence in their ability to save and provides
an opportunity to see delayed gratification in action. In an
age when we and our children are bombarded with advertising
begging and enticing us to "Buy Now, Pay Later," the concept
of delayed gratification seems to be largely lost and
deserves a resurrection. (Adults would do well to do this as
well-it is amazing how a little time can change our wants
and needs!) In addition, once the savings goal has been met,
children may even discover that the money would be better
spent for something else.

Finally, allot a small percentage for discretionary
spending, if desired. You might find that the following
percentages work well: 10% charity, 50% long-term savings,
30% short-term savings, 10% spending. Find a balance that
works well for you and stick with it. Check on your
children's finances regularly and help them as needed.

Hold a Bill-Paying Night

This is a great activity to show your school-age children
where your money goes. You might even learn a bit yourself.
First, assemble a list of your monthly and/or weekly
expenses and their amounts. The amounts don't have to be
exact; it's the principle behind the amounts that counts.
Write the expenses and their amounts on separate slips of
paper. Then, add up your monthly income and use pretend
money (or make your own) to represent the amount. (Make sure
you have enough smaller denominations to be able to "pay the
bills.") Next, take the expense slips and give them to your
children. Have them come to you and "collect their bill" one
expense at a time. This is an excellent visual
representation of how quickly the paychecks get depleted!
Afterward, as a family discuss ways you can cut your
spending to help stretch the paychecks for things that are
really important. You might be really surprised at your
children's input. Create a family plan and put it into
action. Post a reminder on the fridge or some other obvious
place.

Encourage Them to Work

Even young children can do extra chores around the house or
yard, or for neighbors, to earn extra money to save for
things they want. Teenagers should be encouraged to get a
job, where possible. Working helps children understand that
money comes at a cost, thus dispelling the money-bearing
tree notion. Working also improves their self-esteem and you
can teach them to take pride in their work and derive
satisfaction from it.

Open a Checking Account

If your child earns enough money to justify a checking
account, help her open one in both your names. Teach her how
to make deposits and withdrawals, how to write checks, and
how to balance the checkbook. These are invaluable skills.
If these are skills that you lack, have the financial
officer explain everything when you open the account. This
way neither of you looks dumb, and you both get an
education.

Have a Family Savings Fund

Save as a family for large expenses like vacations. Post a
chart tracking your goal and your progress where family
members can be reminded of it. Set up a jar or box for
keeping the money in. If you're worried that you or the kids
might be tempted to tap into it for "emergencies", establish
a family rule that money can only go in (or out) of it when
all family members are present and agreeable.

Establish Spending Limits

Establish spending limits for items like clothes and shoes.
Be willing to pay so much for something, but your child must
make up the difference with his own funds if he goes over
the allotted amount. For example, he may want a $100 pair of
shoes. You agree to pay what you would normally pay (say
$40) and he has to come up with the rest. New school clothes
take a huge bite out of the family budget every fall; why
not enlist the aid of your kids? Agree to only pay for so
much and then leave the buying up to them (within reason, of
course). They may really surprise you with what they are
able to do with their money. Encourage them to watch for
sales, etc., in order to maximize their dollars.

Take Your Child Grocery Shopping

If your child can run a calculator, she can help you grocery
shop. Give her a fixed amount that you will spend on
groceries and have her subtract each item from the total as
you shop. Teach her to compare food labels and get the best
product for the money. Store brand products are often as
good as the national brands. Ask for her input about how you
can reduce your overall grocery bill.

There are many ways to teach your children the value of
money (and you've probably come up with more on your own)
and at the same time help them build valuable lifelong
skills. If you don't teach them, who will? My own sister
found herself wallowing in several thousand dollars debt at
the tender age of 21, and trying to hide it while convincing
herself that she could get out of this mess alone. She
couldn't. Bill collectors were hounding her and my parents.
My parents had to take out a loan to bail her out and she is
now paying them back, but working three jobs to do it. It's
been a lesson for all of us that kids need to be taught
financial skills; it is not something that comes naturally.
So take the opportunity to call a cease-fire in the battle
between your kids and your wallet and work out a compromise
in which both sides win.

************************************************************
 © Simple Joe, Inc.
Chemain Evans is a quality control specialist for Simple Joe, 
Inc., makers of the popular Simple Joe's Expense Tracker PC 
software. Expense Tracker is a quick and simple way to keep 
track of your expenses and stay within your budget. Expense 
Tracker (http://www.simplejoe.com/expensetracker/index2.htm) 
is ideal for tracking personal, business, home and club expenses. 
This article may be freely distributed as long as the copyright, 
author's information and an active link (where possible) are 
included.

669 Words (Edited)

Title: Teaching Children About Money : Your Kids vs. Your Wallet
Author: Chemain Evans

How many times have you wondered whether your children think
money does indeed grow on trees? It probably seems like
every time you turn around your wallet is being attacked by
the "gimme's". If you honestly examine your spending habits
(and those of your kids), you may realize that you have not
given them any reason believe that you don't have a money
tree.

In truth, we all want things and kids are no different. How
easy it is to whip out the credit card(s) and instantly
gratify our desires. What message are we sending our kids?

What follows is a collection of ideas about how we can
instill in our children a better understanding of money and
how it works.

Establish a Savings Account and a Plan

Every child should have his own savings account even if it
is just a piggy bank. Whether your child receives an
allowance or works a job, establishing a savings plan is a
must. Encourage your child to donate a certain amount to
charity (to help them develop a lifelong habit of helping
others). Then establish a certain percentage for long-term
savings (such as college) and short-term savings (such as
clothes, toys, etc.).

Saving for both long- and short-term goals will build a
child's confidence in her ability to save and helps her
learn delayed gratification. And, once the savings goal has
been met, she may even discover that the money would be
better spent for something else.

Finally, allot a small percentage for discretionary
spending. You might find that the following percentages work
well: 10% charity, 50% long-term savings, 30% short-term
savings, 10% spending. Find a balance that works well for
you.

Hold a Bill-Paying Night

This is a great activity to show your school-age children
where your money goes. You might even learn a bit yourself.

First, assemble a list of your monthly and/or weekly
expenses and their amounts. The amounts don't have to be
exact. Write the expenses and their amounts on separate
slips of paper. Then, add up your monthly income and use
pretend money (Monopoly® money or make your own) to
represent the amount.

Next, take the expense slips and give them to your children.
Have them come to you and "collect their bill" one expense
at a time. This is an excellent visual representation of how
quickly the paychecks get depleted!

Afterward, discuss ways you can cut your spending to help
stretch the paychecks for things that are really important.
You might be really surprised at your children's input.

Encourage Them to Work

Even young children can do extra chores around the house or
yard to earn extra money. Teenagers should be encouraged to
get a job. Working helps children understand that money
comes at a cost, thus dispelling the money-tree notion.
Working also improves their self-esteem and you can teach
them to take pride in their work.

Have a Family Savings Fund

Save as a family for large expenses like vacations. Set up a
jar or box for keeping the money in and post a chart
tracking your progress where family members can be reminded.

Establish Spending Limits

Establish spending limits for items like clothes and shoes.
Be willing to pay so much for something, but your child must
make up the difference with his own funds if he goes over
the allotted amount. For example, he may want a $100 pair of
shoes. You agree to pay what you normally pay (say $40) and
he has to pay the rest. New school clothes take a huge bite
out of the family budget; why not enlist the aid of your
kids? Agree to only pay for so much and then leave the
buying up to them (within reason, of course). They may
surprise you with what they are able to do with their money.
Encourage them to watch for sales in order to maximize their
dollars.

Take Your Child Grocery Shopping

If your child can run a calculator, she can help you grocery
shop. Give her a fixed amount that you will spend on
groceries and have her subtract each item from the total as
you shop. Teach her to compare food labels and get the best
product for the money. Ask for her input about how you can
reduce your overall grocery bill.

There are many ways to teach your children the value of
money and help them build valuable skills. If you don't
teach them, who will? So take the opportunity to call a
cease-fire in the battle between your kids and your wallet
and work out a compromise in which both sides win.

Articles & Products Related To Teaching Children About Money

Article: Personal Finance - Why Is It So Hard To Talk About Money?
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Product: Simple Joe's Money Tools - Personal Finance and Investing Financial Calculators
Product: Plan and track your savings with Simple Joe's Money Ahead
Products: Web Page: Main | Products - Personal Finance Software
Books: Best Books about Money & Kids
Books: Robert T. Kiyosaki Books - Rich Dad, Poor Dad Series

About the author Chemain Evans

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Page Title:	Article: Teaching Children About Money
Keywords:	teach children about money teaching kids personal finances how to spend and save help tip free information article web site content website, free reprintable article
Summary:	How to teach your children about money. How many times have you wondered whether your children think money does indeed grow on trees? If you examine your spending habits, you may realize that you have not given them any reason believe that you don't have a money tree.