Teaching Your Kids About Money From Focus On The Family

Proverbs 22:6 (NIV) Start children off on the way they should go, and even when they are old they will not turn from it.

Building A Case For Teaching Children About Money

· As a matter of fact, a recent Consumer Reports survey revealed that 28 percent of students did not know that credit cards are a form of borrowing. 40 percent did not know that banks charge interest on loans.

· Advertisers and credit card companies are targeting children and teens.

80 percent of parents assume that schools are providing classes on money management and budgeting.

· 63 percent of older teenagers – kids who are notorious for knowing it all and not listening to their parents – say that they get most of their information on money matters from mom and dad.

· Financial support for churches and ministries is dropping – and is likely to be even weaker in the future. The younger generations simply aren’t getting the message that giving matters.

How to Teach Pre-Schoolers and Kindergartners About Money From Dave Ramsey

1. Use a clear jar to save.

The piggy bank is a great idea, but it doesn’t give kids a visual. When you use a clear jar, they see the money growing. Yesterday, they had a dollar bill and five dimes. Today, they have a dollar bill, five dimes, and a quarter! Talk through this with them and make a big deal about it growing!

2. Set an example.

A study by the University of Cambridge found that money habits in children are formed by the time they’re 7 years old.(1) Little eyes are watching you. If you’re slapping down plastic every time you go out to dinner or the grocery store, they’ll eventually notice. Or if you and your spouse are arguing about money, they’ll notice that too. Set a healthy example for them and they’ll be much more likely to follow it when they get older.

3. Show them that stuff costs money.

You’ve got to do more than just say, “That pack of toy cars costs $5, son.” Help them grab a few dollars out of their jar, take it with them to the store, and physically hand the money to the cashier. This simple action will have more impact than a five-minute lecture.

How to Teach Elementary Students and Middle Schoolers About Money
4. Show opportunity cost.

That’s just another way of saying, “If you buy this video game, then you won’t have the money to buy that pair of shoes.” At this age, your kids should be able to weigh decisions and understand the possible outcomes.

5. Give commissions, not allowances.

Don’t just give your kids money for breathing. Pay them commissions based on chores they do around the house like taking out the trash, cleaning their room, or mowing the grass. Dave and his daughter Rachel Cruze talk a lot about this system in their book, Smart Money Smart Kids. This concept helps your kids understand that money is earned—it’s not just given to them.

6. Avoid impulse buys.

“Mom, I just found this cute dress. It’s perfect and I love it! Can we

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