Teaching Kids About Money: Goals – What We’re Reading Now

Cherly Lock writes: “If you thought the easiest way to teach your kids about money was to have them write down their goals and stay on a budget, you’re a genius.” This study (among college freshmen) revealed that very simple (almost obvious) habits like writing down goals and tracking spending are mutually-reinforcing, and that both lead to more confidence and greater financial security. It’s almost like magic: just write it down, and it becomes reality!

Teaching Kids About Money: Games – What We’re Reading Today

JA Finance Park is an online game oriented at teaching kids more financially savvy. The game, used in 468 schools nationwide, has been part of the curriculum at Maryland schools since 2010, after the financial crisis had made business leaders aware of the widespread ignorance about how mortgages, credit cards and other basic financial instruments work. For more, read CNBC’s article on games used to teach kids about money.

When the Allowance Becomes a Tool of War: Allowance on the Dark Side

For all of the benefits of an allowance, in teaching kids how to manage money, budget, and save – there is a dark side as well: the allowance can become a tool in your war chest against child insurrection. I’m not happy we’ve come to this place. It’s a dark place. Somehow, our household has descended into a true democracy… and the kids have the largest voting bloc. Fortunately, Tracie and I are the only …

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Set Your Kids Up to Fail!

You read that right.  You need to think of ways to set your kids up for failure. Failure is a part of life.  Learning to deal with failure is vital if you want to succeed. I see way too many kids who have never been allowed to experience disappointment or failure.  They have been raised to believe that they just have to do their best, and at the end of the day they’ll get their participation …

Allowance: Moving from “Getting” to “Earning”

When we first started giving our kids an allowance, we had a core philosophy that the allowance wasn’t payment for being good, or doing their chores. Rather, the allowance was a recognition that we trusted them to make their own spending decisions, using money we would have spent for their benefit regardless. Now that they’re all teenagers, we’re going to change the rules a bit. We’re going to take a portion of their allowance and …

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Dipping Into Savings – 401k Kid Accounts

One of the core philosophies of our kids’ financial lives is the Share Save Spend strategy:  the first part of all income goes partially into giving, and partially into savings, before being allocated into a spending category.  What’s the point of putting money into savings, though?  Aren’t you just going to spend it all eventually? Well, of course you’re going to spend it eventually.  You can’t take it with you, right?  For younger kids, this …

No Debt Not Ever – Raising Financially Responsible Kids

If there’s one thing you should keep in mind when working with your kids to teach them about being financially responsible, it’s this: No Debt, Not Ever. This goes beyond preventing your kid from incurring debt.  It should also be a part of the way you talk about money and paying for things.  Here’s an example:  You’re at the store, and Junior says, “Oh, I forgot, I need a new pair of shoes, they won’t let …

Teaching Kids to Manage Income

  We have been working out the details of managing an allowance for our kids over the last six years, and have a few guiding principles that have helped us adapt when changes are necessary: An allowance isn’t their money, it’s ours; we’re just giving them freedom in managing it An allowance doesn’t cost us anything; it’s the same amount we would have spent on them anyway An allowance isn’t tied to jobs or chores; however, …

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Kids Managing Money: Getting Started with Share Save Spend

When you’re starting to talk about money with your kids, the place place to start, in my opinion, is with the Share Save Spend philosophy. Look a bit around the ‘net and you’ll find references to it everywhere – I’m not sure if it was Nathan Dungan who came up with it first, or Dave Ramsey, or ThreeJars.com, or Elmo from Sesame Street.  It doesn’t really matter, though, because the concept is easy enough for …

A Book That Teaches Parents How to Make Their Kids Financially Literate

It has come to our attention that the way we have raised our kids to understand money is a bit unusual. After the financial crash of 2008, we realized that there were way too many people who had grown up without a basic understanding of how money and basic finance work.  We decided our kids would be different.  We set out to create a plan that would gradually train our kids in one of the …