Then look up the manufacturer’s stock price and monitor it over time. If your child is old enough to understand the concept of stocks and publicly traded companies, go through the house together and identify favorite items, such as computers and clothing. Play “The Stock Market GameTM” Get online and go to There you’ll find “The Stock Market Game.” Sponsored by the Foundation for Investment Education, it lets kids in grades 4 through 12 assemble and monitor a hypothetical $100,000 portfolio for 10 weeks. Or tell them of famous athletes or other celebrities who spent everything they made and then were left with nothing. For example, you could share with them the worst financial mistake you ever made and how you learned from that experience. Tell stories (real anecdotes) about good and bad money management to convey your monetary values. As your children begin to understand more about money and decision-making, take them through your monthly budget to show them where the money goes and to demonstrate responsible decision-making. For example, in addition to giving them their allowance, at the end of the year, match the amount they ™ve accrued throughout the year. You can give your children an incentive to save by matching what they save. As for when to begin giving an allowance, it’s generally recommended once children are in school. When should you begin giving an allowance? Should there be any strings attached? It’s an individual decision. Giving children an allowance can provide an important first step towards financial responsibility. Look at the cost of every-day groceries, such as milk, eggs, bread or macaroni and cheese, or compare the cost of toys. Shop with your young children and show them how to compare items for price and value. Older kids can help with household budgeting and bill paying. Ask your child to assist you in planning whether to find less expensive activities for each day or whether to budget for one or two more expensive trips. Practical money skills for life suggests planning a “ staycation,” or a week’s worth of day trips in your local area. Give your child a set amount of money and let him help you plan a grocery list, a list of activities to do in one month or where the family should go out for dinner. Upon getting paid for allowance, birthday, Christmas or other occasions and gifts, have the children split up their money to each category and once or twice a year allow the child to choose from a list of ideas where they would like to give their money. You can use a jar system labeled SAVE, SPEND, SHARE or the premade give, save, spend banks. Teach kids how to give, save and spend money. Did you know that a college graduate earns an average of $25,717 more annually than a high school graduate or $1 million over a 40-year career? The gap doubles for those with an advanced degree. Talk to them about ”and show them how ” education pays off over the long term. Teach your children the value of a good education. Paying off all your bills on time and staying out of financial trouble could set the right tone for the next generation. Be a role model of responsible money management. As your children mature, you will have many opportunities to teach them about good financial management, from kindergarten all the way to adulthood. Teaching your children to be financially responsible is one of life’s critical lessons. Just about anyone who’s ever watched a child or grandchild go from the crib to kindergarten and beyond has uttered the phrase, “They grow up so fast.” Although you can’t really freeze a youngster’s precious moments in time, you can take steps to make sure that his or her journey to adulthood starts with a sound understanding of money, investments, and personal financial responsibility.
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