How To Talk To Your Tween About Money

Teaching financial literacy has been my passion. Overthat new "thing" they just had to have when you
the years I've had an opportunity to speak towere paying for it becomes less important to them
parents who want to know how to talk to theirwhen they come to realize that it will greatly reduce
children about money and want tips to help themthe amount of money they will have left.
become more independent before they go off intoIf your family doesn't embrace the allowance
the real world.concept but still wants to help your children have
For many parents it seems like just yesterday thatfirst-hand experience with money management,
your children were on their way to kindergarten, butanother way to teach tweens about money is
now that they're in middle school things seem to bethrough interactive learning experiences and board
happening way too fast. Tweens seem to go fromgames such as:
having play dates to group movie dates right in frontLife Payday Monopoly Jr. The Allowance Game and
of your eyes.Cashflow for Kids
And they're fashion conscious and brand sensitive farThese are all wonderful ways to teach lasting lessons
earlier than we ever were. This is all the more reasonin an entertaining way. Not only will these games help
for us to help them get a financial grip on money andyour child strengthen their math and problem solving
the need for saving by talking to them early andabilities, they'll also understand basic money concepts.
often about ways to save and spend moneyFinally, encourage your children to save with a
responsibly.purpose and if possible offer to add a small
Here are a few things you can do to get your tweenpercentage to whatever they have saved. This
ready for the day when you'll need to cut the stringsteaches the lesson of compound interest and how
and watch them spread their well-prepared financialmoney grows if left untouched.
wings.The next time your child wants a new bike,
Giving your tween an allowance is a great moneyskateboard or series of Karate lessons use it as a
move. It will help you as a parent reign in theirchance to challenge their desire for what they want
budget-busting requests while teaching them theby having them save for it. As an extra incentive
value of a dollar and saving for the things they reallyagree to match their savings dollar for dollar up to a
just "must" have.set amount or a specific period of time.
In her book, "Kids and Money: Giving Them theThe benefit of this to you is that your child will
Savvy to Succeed Financially," author Jayne A. Pearldevelop discipline and a habit of not spending every
says this about giving your children a fixed spendingdime they get their hands on. Plus, when you make
budget. "Allowance is an effective way to startthe goal one that's reachable even if they fall short,
transmitting to your kids financial literacy, values, andyou can assist them so they will be encouraged to
decision-making skills."try again next time.
When tweens have access to money they canThe biggest thing to remember is to encourage their
better understand the meaning of it and the propernew saving habits and find ways to support them so
ways to use it. Trying to help them understand thethey'll actually think of it as something fun. Once that
basics of money management using something thathappens you've created a situation that will develop a
they have earned and saved for is powerful. Oftenpositive attitude toward saving for a lifetime!