Monday, May 18, 2009

Kids and Money

"That which we obtain too easily, we esteem too lightly." -- Thomas Paine

Allowances are a good way for kids to learn money management and the value of money.

I finally started giving my kids an allowance. Nothing extravagant, just five dollars each a month. They have a list of chores to do and if they don't keep up with them, I knock off a little. Their duties around the house are to keep their rooms and the living room picked up, clean their bathroom, etc. They are always eager to do things around the house and are much better about keeping the place picked up.

Here's a post from Get Rich Slowly, where a guest poster tells about taking a survey about money to 4th graders. The results are interesting. The kids seem to have a good grasp of money and advertising.

I know the effects of advertising on my kids. They want about everything. I know this isn't anything new; a lot of parents go through this. Part of our jobs as parents is to teach them to be skeptical of what they see. Then they can buy things with their allowance that they will truly appreciate.

This is teaching them for later in life. They need to learn value and how to find it. Now is a good time to be teaching them about unit pricing and calculating value. Now is when they start to learn good financial habits. Make sure you're not one of the parents that is failing the kids in their financial literacy.

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