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National Money Night Talk: Tips for Kids, Part II

Money Night Talk LogoTo continue what I started yesterday in celebration of my new book and the National Money Night Talk, here are a few great comments from the readers of Dough Roller about how they’re teaching their kids about money:

I taught my children to take any money they get (holidays, birthdays or paychecks/money earned) and divide it into categories and assign a percentage (i.e., church contribution, savings, specific fund like vacation money or something special they want to buy) and then no matter how big or small the amount, they are contributing to their financial goals.

I’ve taught my daughter to save for the things she really wants. She has a savings account and anytime she puts money in, I explain that that money needs to stay in there for at least 6 months before she can use it. I use this strategy so she won’t put all her money in then take it right back out because she needs it. Now she has to think about how much she will need from her monthly allowance to keep for use and how much to save for long term purchases. As an example she has only withdrawn money 1 time in the last 2 years and it was to buy a Nintendo DS game she really wanted but didn’t have the $25.00 in her possession. She is 9 and already a better saver than I am, although I am trying.

When my son was growing up, we insisted that he pay half towards any major “fun” item he “had to have” such as an electric guitar. It made him really think carefully about what he “needed” versus what he “wanted.” Today, before he buys anything on credit, we remind him to make the same distinction and not get into debt for something he doesn’t absolutely need.

I’ve taught our boys basic life skills. Grocery shopping info like unit pricing, using coupons, checking food ripeness. Clothes info like finding durable items in thrift/discount stores. Skills like laundering, cleaning, cooking, and doing basic home repairs. Once they start driving we’ll include changing tires, checking oil/fluid levels and those kinds of things. All hands on activities impact finances.