We Are All Financial
“Human beings have the
remarkable ability to turn
nothing into something. They
can turn weeds into gardens
and pennies into fortunes.”
~ Jim Rohn
HOW & When?
1- Are your kids old enough to keep
coins out of their mouths? Then it’s not
too early to start teaching them about the
more practical uses of money.
2- By spending just 30 minutes a week teaching
children the basic principles of money management, you
can sow the seeds of financial stewardship that will
empower them throughout their lives. You can prepare
them for adulthood in our global economy by giving them
self-confidence and a better understanding of the world
in which they live.
3 - Start early. When children
are young you can introduce them to money in
Create math games that incorporate the basics:
five pennies equal a nickel, four quarters equal a
dollar, and so on. Be active and engaged in your
lessons. You can find a lot of ideas at
Where To Start?
4 - Break down basic principles. Teach
one key financial principle per month.
Create a calendar and teach budgeting
one month, maintaining a savings account the
second, philanthropy the third, and so on. Children
will not become incredible money managers overnight, so
give them time. A great Web site for fundamental financial
information for kids from ages 5 to 18 is
5 - As with goal-setting, budgeting
instills self-discipline in handling
Encourage your children and
teens to make a list of the things they
want, how much each will cost, and how much they’ll need to
save for them. Whether it’s a new pair of jeans or tuition for
driver’s ED, having a budget will help them track their
progress, restrain impulse spending and achieve their goal.
Visit the personal finance section at www.money.cnn.com
for great budgeting plans and so much more. It’s one of
my favorite money management sites.
Get real about plastic
6 - Avoid using credit and debit cards whenever possible.
As tempting as they are, plastic cards teach false
values. Children learn by example and they will
learn nothing significant about money if they
don’t see you using any. If you give yourself a
budget of $100 a week, for example, then take that
cash out of the bank, and only spend what you have
in your wallet.
Teach Them to Be Prepared
7- Show them that you have your own savings account,
some cash on hand, and a reserve account. Let them
know that when the stove goes out, $$$ - SOS!!!! not to
worry because you have the money to replace it without
having to use credit. Witnessing firsthand the
importance of keeping emergency funds available will
teach children the value of saving and preparing for
unexpected expenses, like a broken skateboard wheel, –
which is, of course, totally devastating.
Sometimes It Hurts
8- Let them blow it.
When your children get into
financial trouble, the worst thing you can do is
pick up the tab. If they have to suffer the
consequences that result from carelessness or
impulse buying, they will learn from these
mistakes and, hopefully, make more conscious
choices in the future.
Finally, as parents, we must recognize that passing on a healthy relationship with money is
important to our children’s future and peace of mind. Money problems can occur when
financial management skills are never addressed. Commit to teaching your children these
skills and discussing them for at least 30 minutes once a week. If you’ve trained them well,
your teens won’t see the credit card offers arriving in the mail as a means to instant
gratification. Teaching your children about money, as well as credit, can be a fun
experience, but most important, a priceless lesson. We are all financial stewards. The fate
of the next generation is in our hands. Start planting now and watch the seeds of
responsibility grow. To read the full We Are Financial Stewards article, please visit