Financially Savvy Kids

Money 101 for Kids: It Doesn't Grow On Trees

Any parent knows that, from time to time, special "teachable" moments come along - those opportunities when a child (and even a teen) seems open to a bit of advice from Mom or Dad.

When it comes to finances, you should look for these moments and exploit them. Chat openly about money and financial planning when you can. Set good examples. Monitor your child's tendencies to save and spend.

Here are some suggestions:

Introduce your child to Junior Achievement's Student Center, a multi-layered website with resources that, among other things, allow children to plan their finances, find a career, even begin designing a business. Here is the link: http://studentcenter.ja.org/
A good teachable moment could come along while you're at the ATM. Explain that money not only doesn't grow on trees - it also doesn't grow inside that machine. Make it clear that you are withdrawing money that you earned and that the supply is not inexhaustible.
Allowance? Yes! But use it to teach about saving, budgeting, reaching financial goals. Insist on a savings plan - maybe 10 percent set aside each week - an nice, old-fashioned piggy bank. Consider matching funds to reward a child's saving discipline. Consider tying the allowance to the accomplishment of attainable chores or goals.
If (when) the child runs out of money, do not prematurely replace it. Enforce financial responsibility.
Set a good example - avoid impulse buying! Involve your child in shopping. Create a shopping list together and stick to it.
Teach children to comparison shop. Use the Internet to research prices at different websites and stores. Teach children to keep receipts so defective items can be returned.
Limit, or turn off, the TV to shield children from a drumbeat of buy, buy, buy messages.
Introduce your child to Internet resources that will entertain and teach them about money. Try www.econedlink.org/lessons/index.cfm for brief financially oriented lessons geared to any age group.
Visit the Florida Council on Economic Education web site at www.fcee.org for a wide array of educational material. Click "Financial Literacy" to order one of three versions of "Financial Freedom" free of charge: Financial Freedom (grades 6-12), Financial Freedom en Español (Spanish speaking students in grades 6-12) and Financial Freedom for Kids (grades K-5). All three programs are designed to increase your child's financial literacy while reinforcing FCAT skills.
Visit www.fljumpstart.org, the website of the Florida Jumpstart Coalition, which works to educate young people about managing personal finances.

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