These days, there’s no shortage of reasons to educate kids about money. But here’s a thought: Since most of our transactions take place with the mysterious swipe of a card, or inside a computer, today’s kids probably don’t see much cash at all.
There’s an interesting discussion going on at The Consumerist right now about how to teach children about money when nobody uses cash anymore. (Scroll through the comments to see what other readers think.)
One of our writers, Caroline Cakebread, wrote a story about teaching kids about money for our November issue (the one with Margaret Trudeau on the cover). Here are a couple of her tips:
Take your kids with you to the grocery store. Tykes in strollers can help by handing money to the clerk. When your preschooler sees you spending money, open up a dialogue about where it goes when you part with it.
Give your child a regular allowance. It’s not about how much they get; it’s about encouraging them to find out what they can do with it (with a little guidance from you to get them started). Help them break their money down into different categories: save, spend and give.
But not in exchange for chores. That sends the wrong message. Being a team player means you do things you might not want to and you won’t be compensated — that’s the real world. Instead, give your kids opportunities to earn extra money by doing other tasks around the house. Birthdays and good report cards are also appropriate occasions.
How did you learn about money? Did you have an allowance, and did it teach you any valuable lessons? (No allowance for me. My education was gained solely through watching my parents, who, luckily, are pretty careful with money.) What are you teaching the kids in your life about money?
P.S. You could use this genius piggy bank to start up the kids’ financial lessons. And if you’re feeling a little under the weather, get (cheap) relief.
