If advertisers can successfully target children from birth with
spending messages, then parents, grandparents and educators can and
should be doing the same with saving messages. I hate to disagree with
many education experts who feel fourth grade, or ages 9 and 10, is an
appropriate time to begin discussing money management with kids, but it
is just too big of a head start to give corporations and businesses who
are increasingly targeting this growing market.
<p>Traditional thinking ignores the fact that today children begin
establishing habits and a relationship with money around the age of
three or four, if not earlier. Let's face it, ninety nine percent of
that relationship has to do with spending and for many is the beginning
of a lifetime of poor money habits.
</p>
<p>Although personal finance authors may disagree on a variety of
issues, one they all seem to agree on is that when you earn or receive
money, the first thing you should do with it is put some away or pay
yourself first. Imagine the impact on a child's life and their parents,
if they are taught this time tested principle from an early age. Isn't
it easy to picture educated, hard working, self sufficient, independent
adults who own homes and businesses?
</p>
<p>I know one of the great regrets of many adults is that they weren't
taught about saving as a child. In fact, it's the main reason I started
writing children's financial books and music. Establishing good habits
are essential to developing a healthy relationship with money. So how
do parents, grandparents and educators teach young children about money
and get them in the habit of saving? Here are some suggestions:<br>
<br>
1. Improve your own understanding of personal finance and set a good
example to follow. Believe it or not, many adults don't understand the
basics of personal finance. Pick up a book on personal finance. There
are several excellent books on the market. Find one that speaks to you.
A few of my favorites are: The Way to Wealth, Benjamin Franklin; The
Richest Man in Babylon, George S. Clason; Rich Dad, Poor Dad, Robert
Kiyosaki; The Automatic Millionaire, David Bach; The Millionaire Next
Door; Dr. Thomas Stanley; The Money Diet, Ginger Applegarth; The Latino
Journey to Financial Greatness, Louis Barajas; Dollars and Sense for
Kids, Janet Bodnar; and Yes You Can! Raise Financially Aware Kids, Jack
Jonathan. You can also find columnists who write regularly online about
kids and money. Check out Steve Rosen ; or Janet Bodnar .
Humberto Cruz writes an excellent column on saving. Money, Forbes,
Fortune, Kiplinger's magazines, and the Wall Street Journal all contain
personal finance information. Remember, verbalized or not, we are
always sending children cues about our money values.
</p>
<p>2. Communicate, communicate, communicate. Talk to your kids
regularly about money. Involve kids in money-related activities (eg.
counting, sorting, shopping, banking, bill paying).
</p>
<p>3. Start early with books and music. Two activities that can
begin from birth are reading to children and exposing them to music.
Both activities help cultivate an interest in and an awareness of
money. Naturally, I strongly recommend It's a Habit, Sammy Rabbit!,
Will Sammy Ride the World's First Space Coaster? and Get in the Habit!
the two books and music CD that my company has published.
Additionally, I suggest: Lucky the Golden Goose by John Wren;
Alexander, Who Used to be Rich Last Sunday by Judith Viorst; Tops and
Bottoms by Janet Stevens; The Giving Tree by Shel Silverstein; and The
Trouble with Money by Jan Berenstain.
</p>
<p>4. Coloring sheets and books. Visit your local bank or credit
union and ask them if they have any coloring sheets and coloring books
for kids.
</p>
<p>5. Piggy banks and saving jars. Get your child a piggy bank or,
better yet, create your own. If you are going to purchase one, my
favorites are The Money Savvy Pig TM and the Moonjar
</p>
<p>
6. Board games and cash registers. Monopoly (Junior), Moneywise
Kids, Payday, the Allowance Game are good choices. Kids love cash
registers and ATM machines. You'll find several excellent choices
</p>
<p>
7. Wealth/goal journal and affirmations. Encourage children to keep
a journal, including pictures, of goals that are meaningful to them.
Create short, fun, repeatable slogans for your kids such as: "saving
makes me strong;" "from every dollar, save a dime;" "change adds up;"
"money likes to grow and grow;" and "earn, save, invest, share and
spend." Post them around the house!
</p>
<p>
8. Clip coupons.
</p>
<p>9. Lists and shopping. Lists are great planning, thinking and
organizing tools, and shopping is a great way to introduce kids to
budgeting. Allow kids to comparison shop for items. Point out the
difference in pricing between generic and name brands. Author Jayne
Pearl suggests playing the "Meat and Gravy" game. Point to items and ask kids
if the items are "Meat" or "Gravy." "Meat" represents items the family
"needs." "Gravy" represents items the family "wants." Maureen Dolan
Rosen's KidsCash is an excellent tool to help middle school kids with
budgeting
</p>
<p>
10. Recycle.
</p>
<p>
11. Allowance. There's no substitute for experience. Give kids an
opportunity to manage their own money and make their own mistakes on a
limited basis under supportive but not overly restrictive conditions.
Be consistent. Check out Allowance Magic, by David McCurrach
</p>
<p>
12. Start an account/Purchase shares of stock or a mutual fund.
</p>
<p>
13. Join or form a discussion group. It's important to find people who share and support your values. Everyday Wealth is a good group to start with.
</p>
<p>
14. Turn Off the TV!
</p>
<p>
15. Set saving goals!
</p>
<p>
In summary, the key components to raising money-smart kids and putting
them on the path to prosperity are: starting early; setting a good
example; communicating openly and honestly on a regular basis; and
routinely involving kids in money-related activities.
</p><br clear="all"><br>-- <br>Stephen J Arnett