The Housing
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| Brenda Singletary |
| 559.816.6532 |
| brsingletary@yahoo.com |
11 Simple Ways to Teach Kids about Money
RISMEDIA, November 5, 2009—Financially speaking, it’s a tough time to be a parent. While the economic
turmoil may be behind us, many companies have frozen pay raises and bonuses while others have faced layoffs,
and as a result, some families are still strapped. If you’re feeling guilty because you can’t buy your child that video
game system he desperately wants for Christmas or if you’re asking him to choose between playing basketball or
taking karate lessons this winter, Eric Tyson has one word for you: Don’t. In fact, he says, now is the perfect time
to teach your kids some valuable financial lessons.
“Kids are surprisingly aware of what’s going on in the world,” says Tyson, author of Personal Finance For
Dummies®, 6th Edition. “And if they don’t know that times are a little bit tough and that mom and dad are having to
watch their spending, it’s time to tell them. Sheltering kids from financial realities does them no favors.” Indeed, the
opposite is true, says Tyson. A good grasp of personal finance is one of the most valuable life skills a person can
have. And while previous generations may have been raised with the constant admonishment that “money doesn’t
grow on trees,” too many of today’s parents neglect that lesson. It’s time to change that—and the severe
recession we’ve been through provides a great incentive for doing so.
Tyson offers the following tips to help you teach your children about money:
1. Tell them the truth. Kids are perceptive. If you’ve been acting anxious and on edge lately, they’ve noticed.
Rather than let them wonder why mom and dad are working so much lately or constantly talking about money,
explain (on their level) what’s going on in the family’s financial world.
2. Explain to them how much things cost. Some parents are surprised to find out that their kids don’t have a very
good grasp on what things cost. A great hands-on way to open their eyes is to take them on a “money tour”
around the house. For example, kids might not understand that hot water costs more than cold water, or that
bumping up the heat results in higher power bills. This exercise will teach them how they can conserve and thus
help the family save money. You can also pile up all of the bills for the month and have them look at the amount on
each one. Show them what the family’s cost of living is and again reiterate the areas in which they can play a part
in reducing the costs.
turmoil may be behind us, many companies have frozen pay raises and bonuses while others have faced layoffs,
and as a result, some families are still strapped. If you’re feeling guilty because you can’t buy your child that video
game system he desperately wants for Christmas or if you’re asking him to choose between playing basketball or
taking karate lessons this winter, Eric Tyson has one word for you: Don’t. In fact, he says, now is the perfect time
to teach your kids some valuable financial lessons.
“Kids are surprisingly aware of what’s going on in the world,” says Tyson, author of Personal Finance For
Dummies®, 6th Edition. “And if they don’t know that times are a little bit tough and that mom and dad are having to
watch their spending, it’s time to tell them. Sheltering kids from financial realities does them no favors.” Indeed, the
opposite is true, says Tyson. A good grasp of personal finance is one of the most valuable life skills a person can
have. And while previous generations may have been raised with the constant admonishment that “money doesn’t
grow on trees,” too many of today’s parents neglect that lesson. It’s time to change that—and the severe
recession we’ve been through provides a great incentive for doing so.
Tyson offers the following tips to help you teach your children about money:
1. Tell them the truth. Kids are perceptive. If you’ve been acting anxious and on edge lately, they’ve noticed.
Rather than let them wonder why mom and dad are working so much lately or constantly talking about money,
explain (on their level) what’s going on in the family’s financial world.
2. Explain to them how much things cost. Some parents are surprised to find out that their kids don’t have a very
good grasp on what things cost. A great hands-on way to open their eyes is to take them on a “money tour”
around the house. For example, kids might not understand that hot water costs more than cold water, or that
bumping up the heat results in higher power bills. This exercise will teach them how they can conserve and thus
help the family save money. You can also pile up all of the bills for the month and have them look at the amount on
each one. Show them what the family’s cost of living is and again reiterate the areas in which they can play a part
in reducing the costs.
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