How To Teach A Kid About Money
By Justin Gardner | Related entries in Education, MoneyI think smart money management is one of the most valuable things you can teach anyone, period. Why? Well, I’m of the opinion that dysfunctional spending leads to a lot of problems in peoples’ lives that they otherwise would have avoided. And sure, people can be retaught when they’re older, but I wish that early education in public schools would seriously focus a lot of time and energy on some of the following, because I think it would help empower more people than any of us could ever imagine. That and free health care for children are two of the most important things to make sure we continue our success as a strong, intelligent nation.
Alright, so from the beancounterblog comes number 3 on the list of 10:
3. Difference Between Needs and Wants: small children - as well as many adults - have a tough time distinguishing between needs and wants. Admittedly, sometimes the line is blurry. I might need a new computer in order to check email faster, make better Excel spreadsheets, and post my last-minute bid on eBay faster - but I have a sneaking suspicion that my need is more of a want. So if it’s tough for you and me to decide what is a need and what is a want, how do you teach your child this important principle? There are a few ideas that I’ve come up with. First, teach your child how to “sleep on it.� If your child really, really wants that Polly Pocket Toy Cell Phone then have her wait a few days to see if she still wants it. Some of the worst financial decisions are made on the spur of the moment. Second, teach your child how to say “no�. By reinforcing that some things are just too expensive or take time to save up for you child will begin to learn that great things come to those who wait. This principle will not only come in handy when telemarketers call but will also help them develop independence and self-discipline. This principle will also help in saying “no� to other things such as drugs and alcohol.
Seriously, the whole list is great, and if you have kids I highly recommend reading it. Hell, if you have ANY significant debt I highly recommend it, because chances are you’re slightly dysfunctional with money and need a helping hand to get back on the right track.
This entry was posted on Saturday, March 4th, 2006 and is filed under Education, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
March 4th, 2006 at 7:59 pm
I can’t believe I’ve never been to that blog before, but it’s bookmarked now.
Thanks muchos.
March 6th, 2006 at 12:07 pm
I heard that.
Of course, I also believe that in addition to teaching kids (and adults) about money management, it would be really f**king nice if there was more info given before people undertake enormous student loans before entering, oh I don’t know, for example, LAW SCHOOL!!!!!!!!!!!!
Granted, we should all be big boys and girls and do the research ourselves, but going into debt for higher education has gotten TOTALLY OUT OF HAND!!!!!!!!!!!!!!!!!!!!!!!
PLEASE, PLEASE, PLEASE look into this stuff before you do it!!! Carefully plan out how much you will have to take out, what your interest rates will be, and how much your monthly payments will be once it’s time to start paying it back.
OK, so now everyone knows my big secret, but I just wish someone had warned me before I did it. (Me - banging my head against a brick wall, repeating the words “stupid” and “idiot” over and over and over . . .)
March 16th, 2006 at 3:12 am
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December 18th, 2007 at 7:21 am
We are very interested in hearing more about your efforts to bring financial literacy to children, and help them be aware and secure their futures.
We are OINK! the Business Newspaper for Kids, primarily aimed at 7 to 12 year olds. OINK! is pink, like the Financial Times, full of money matters for kids and is distributed FREE each month upon request to schools, libraries, children’s hospitals and sports clubs across the United Kingdom.
Over the past four years we have built a steady reputation of bringing information about money and commerce to kids in a fun, creative and highly stylised way. The newspaper’s content is cutting edge, ground breaking and often thought provoking, and has won recognition from the National Literacy Trust and the Schools Library Association as an important literacy and learning tool.
Amongst our many supporters, we are pleased to include the Bank of England, the London Stock Exchange, the Financial Times, ICICI Bank, Capital Disney, FUN radio, SEGA, Hamleys, SONY, Bandai.
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Below please find a link to our websites.
http://www.piggybank.co.uk
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http://www.oinkonair.com