Comments on: Learn About Investing So That You Can Teach Your Kids

By: 5 Ways to Dramatically Improve Your Finances . . . Beginning NOW

5 Ways to Dramatically Improve Your Finances . . . Beginning NOW — Fri, 22 May 2009 08:03:49 +0000

[...] Learn About Investing So That You Can Teach Your Kids [...]

By: Link Love: 12 Days and 12 Peeps to Love | I've Paid For This Twice Already...

Tue, 16 Dec 2008 18:00:50 +0000

[...] 2. Simple Mom: Learn About Investing So You Can Teach Your Kids [...]

By: David

David — Wed, 10 Dec 2008 22:04:22 +0000

Great post! I wish my parents had taught me more when I was young – I think I could have stayed out of all that credit card debt I got myself into during college if they had. This is so important to tell parents

By: AnnJo

AnnJo — Wed, 10 Dec 2008 20:04:40 +0000

Preparing younger children for financial good sense doesn’t have to be all about money.

A lot of investing is about habits of thought and action, like deferring gratification, planning ahead, diversification, constancy, self-discipline, the power of time, how to accept advances and reversals of fortune, how to learn from mistakes, how to recognize and resist marketing ploys, how to resist panic and euphoria (i.e., peer pressure).

They can learn things like that from activities like gardening or other projects that have long-term lead times and build incrementally, chores, meal planning, hobbies, participating in the saving, planning and research for a major household purchase (new car, new refrigerator, vacation trip, whatever), team and individual sports, and other activities of normal life.

Once children are older, running a small business (babysitting, tutoring, lawn mowing, etc.) is a great way to teach about marketing, branding, balance sheets, banking, profit and loss, fixed and variable costs, return on assets, cash flow, debt, etc.

By: Tasya

Tasya — Wed, 10 Dec 2008 01:23:15 +0000

I really agree with you. I remember when I was kid, my mom always told me not to spend all of my weekly pocket money. And from that simple thing I learn much about managing my own money, until now. Having a managed savings really helped me in my rainy days….

Tasya´s last blog post…Educating the Children Starts with Educating Yourself

By: Jennifer

Jennifer — Tue, 09 Dec 2008 15:05:50 +0000

This is so true – my mom had me open my first checking account when I was in the 4th grade (how old are you then…8 or 9? It’s been a while..haha) She explained to me the importance of saving your money so that it would be there for you when you needed it (her explanation was much more in depth than that, but that was the gist of it) So over the next few years, whenever I would get money for doing my chores or as a gift at Christmas or birthdays, I would always put a good portion of it into my checking account. After a while, it was second nature for me to put part of whatever money I earned into the bank – I did this all through middle school, high school and college. As a result, I am 24 years old with absolutely no credit card debt, I own my own car and my own house, and I still have a good chunk of change invested in money markets that I am saving for whatever the future holds. I know without a doubt that I will do the same thing with my children that my mother did with me. She helped prepare me at an early age for what life would hold, taught me the importance of saving, and helped me turn my life into what it is today (thanks, Mom!)

By: Dominique

Dominique — Tue, 09 Dec 2008 12:59:03 +0000

I feel that it is never too early to teach your kid the value of money and how to invest in it wisely. I started my elder boy saving when they were two and now at 4yrs old and being able to do simple calculations I think its time I introduce him to investing prudently. Great article

Dominique´s last blog post…Learning to read(Part 2) – the A-Z way

By: Laura

Laura — Tue, 09 Dec 2008 07:41:55 +0000

What great information. And so timely. Thank you .

By: Paula, Stuff 2b Organized

Paula, Stuff 2b Organized — Tue, 09 Dec 2008 03:22:36 +0000

I just started an allowance with my 7 year old. She has the potential to earn up to $5 a week. Noticed I said potential. If the chores are not done, the pay gets reduced. She is still expected to perform certain tasks that she doesn't get paid for like picking up after herself, making her bed, getting herself ready for school. Some day I won't have to give her so many reminders. And, she gets a bonus if ALL chores were completed for the week. OK, onto the investing portion. When she gets allowance, 10% goes to God and 10% goes into her savings. She can choose to do more, but that's the requirement from us at this point. Life skills and responsibilities along with care and love go a long way! Paula, Stuff 2b Organized´s last blog post...Just For Fun

By: Sandy

Sandy — Mon, 08 Dec 2008 23:56:43 +0000

Crown Financial Ministries offers a number of resources to help parents teach their children sound financial principles, including workbooks and curriculum. They even have an ABC bank--A for Giving to church and/or charitable organizations, B for Saving for the future, and C for Saving for spending on needs. You can take a look at their resources at crown.org (then click on Buy Resources, scroll down a bit and click on Children's Resources). Crown also has some fantastic resources for grown-ups, too. It's a great ministry. Sandy´s last blog post...Doing Your Husband Good