Teaching Kids about Finance

The best way to teach kids about money is to let them manage it.
Preferrably starting with an allowance and later moving on.


Setting a good example (like living beneath your means) is also a good
thing.

Barb

"Barbara Bomberger" wrote in message
...
The best way to teach kids about money is to let them manage it.
Preferrably starting with an allowance and later moving on.

It doesn't have to be real money, either.

One suggestion that I have heard is give a kid $100,000 fake money, and have
him/her choose investments. Deduct $15/trade. Encourage the kid to invest in
things like mutual funds. Then follow the money like you would follow money
in a real account, add in dividends, etc. Use a program like Quicken or
Money.

Here is a site wtih some financial info for kids:
http://www.familyeducation.com/subch...65-189,00.html

Look at credit union websites. They often have pages that are geared to
teach kids about money. (For some reason, banks don't seem to have them as
often).

There is a great radio show on public radio and the internet: Sound Money.
Listen to it with your kids. Talk about what you hear. Both of you will
learn a lot. (www.soundmoney.org).

And many banks have accounts for kids (usually with an adult cosigner).
Consider opening one. Credit unions do this too. And they seem more user
friendly than banks. So you might get more help and info from a credit
union.

Jeff

Jeff


Setting a good example (like living beneath your means) is also a good
thing.

Barb

"Chookie" wrote in message
...
In article ,
(Laura) wrote:

All too often parents and teachers do not have a good grasp of
financial principals themselves and so it can be very difficult for
them to break down and teach these principals to children. In order
to improve my ability to teach these ideas to children

How about you work on your spelling while you gather ideas on the finance
stuff?

hoow abouut iff wee reelize thaat nooot everrryone is perffect nor a greet
speler? I certainnly ammm not a goood spelller.

How about if you work on making sure you have something constructive to say
before you say it?

Jeff

In article , user says...


After all... how else would you do it?


Ya mean you don't borrow, then apply for new cards, then shift balances, then...


Well, if you manage that just right, you CAN get your FICO score bumped up
a noticable amount... I'm sure that's why it seems to be a popular money
management technique. ;-)


You sure dont' know high finance, do ya!

Guess not. I hope I get it figured out before I retire at 48. ;-)

It's amazing how many people actually live that way.


It is interesting though. Back when my wife and I were DINK's, we
knew several couples, also DINK's, who took in noticably more money
than we did, and were STILL living paycheck to paycheck, where we
were essentially just banking my wife's salary. A very large
proportion of the difference seemed to be because of house purchases -
we are perfectly happy in a small ranch, while the others "need"
several thousand square feet. And the difference between a $600.00/mo
mortgage payment and $2000.00/mo mortgage payment means one *heck* of a
lot of difference in how you can live you life.

Bingo. I have that 1750 sq. ft. 3 bed/1 bath ranch, and I see compatriots at my
salary snatch up McMansions thinking they're being smart.

Not.


For that matter, one family we know just "had" to go from a 2200 sq ft
house to 3700 sq ft, to accomodate their 2 kids. Never mind that
they occasionally need to put their house payment on a credit card....

Jees. Lemme guess - they lease two vehicles..

Banty

In article ,
(Laura) wrote:

All too often parents and teachers do not have a good grasp of
financial principals themselves and so it can be very difficult for
them to break down and teach these principals to children. In order
to improve my ability to teach these ideas to children I am looking
for advice on how to teach financial principals such as budgeting, use
of credit, saving, and investing to children. Personal experience or
current resources (both electronic and conventional)would be great.

Thanks
Laura

Dave Ramsey who has a bunch of books for adults also has a system for
kids -- it is quite sound [although I find his preaching a bit off
putting]