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