Teach Your Children About Money

By 8 to 10 years old, most kids would like a savings account. Bring your child to the bank and let them meet with the banker who will open their account. Let them fill out the deposit slips and the withdrawls when their account is active. Also, begin to include them in your family finances. Once upon a time including your children in your finances would have been "taboo". Let them know how much it costs to heat the house or run the water. Maybe they will be more willing to put a sweater on or take shorter showers when they know the facts. Show them how much you have to put in the bank to cover those costs. Let them help you at the grocery store too.

Illustrating the cost difference between their favorite sugar coated cereals and an "off-brand" will help them understand that there is a reason why you say no, and it's not just to be mean. I remember thinking to myself as a child that when I got older I would only buy name brand items. I also remember my first trips to the grocery store in college, and how I learned to stretch the paltry sum in pocket! I wish my parents would have let me help them pay the bills, if they had those first utility and credit card bills wouldn't have been such a shocker! By the age of 11 and up, your child might have a few babysitting regulars or a paper route. Then as they reach 16 or so, perhaps a part time job. You can set up a Roth IRA for your child's earned income. $1000.00 invested at age 12 could grow to over $150,000 by the age of 65.

Explore the stock market with your child too. Every child has a company they are interested, whether it's McDonalds or Nike. Show them the basics, what to look for, etc. A site like Young Investor, can do this in a fun and user-friendly way.

Being honest with your child about money is the most important thing. Utilize the vast amount tools and resources available online to promote your child's interest. Having a good, basic knowledge of financial facts now, will save them a lot of the agony many of us went through when we first stepped out on our own.

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