[Kde-i18n-vi] Stephen J Arnett - How to Teach Kids to Save Money – 15 Easy Strategies

[paul.kholer paul.kholer]

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.

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.

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?

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:

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.

2.    Communicate, communicate, communicate. Talk to your kids regularly
about money. Involve kids in money-related activities (eg. counting,
sorting, shopping, banking, bill paying).

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.

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.

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

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

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!

8.    Clip coupons.

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

10.    Recycle.

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

12.    Start an account/Purchase shares of stock or a mutual fund.

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.

14.    Turn Off the TV!

15.    Set saving goals!

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.


-- 
Stephen J Arnett
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