We're entering the holiday season. It's a wonderful time of year. But the holidays can also put stress on any relationship because the season often highlights the different approaches people have to handling money. As early as early childhood, parents should teach their children how to handle money so that they won't have any problem with financial tools such as payday loans in the future. Since the holidays is fast approaching try to give them a little cash and try to observe how will they spend their money then in the long run orient them to use it.
How to Teach Your Kids About Money (Page 3 of 3)
Categories: Family & Money
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We also like First Share (www.firstshare.com). For a $30 annual membership fee, plus a few extra dollars for referrals and handling fees, First Share allows you to buy stocks that offer DRIPs in quantities as small as one share at a time. And Sharebuilder (www.sharebuilder.com) will carry out investment transactions for a small fee, with three different plans available and no minimum investment required, so that you can buy just one or two shares at a time.
Ages 14–15
This is where teaching your kids about money is critical. The money habits they develop early on will help or hurt them for years to come!
This might be a good time for them to get a part-time job, which brings new responsibility and additional income.
Age 16–18
Get them a credit card. Make sure there is a $500 limit! Tell them they have to get authorization from you before they make charges. Have the credit card issuer send duplicate bills, one copy to your teenager and one copy to you, so that you can keep track of the charges and payments. Have your teenager sit down with you as you write the check to pay off the balance.
If you follow these steps, your children will be ahead of their peers when it comes to managing their money smartly. And even if they "forget" a few of these lessons as they go off to college, we're willing to bet they'll somehow "remember" them when they're on their own.
Of course, you may have a few more gray hairs, but they will have been worth it!
Click below to learn more tips on teaching your kids about money:
- Summer Jobs – Everybody Wins!
- How Much Allowance Should You Give Your Child
- Family Finances – The Big Picture
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November 20, 2009 2:39 AM
updated: November 20, 2009 2:47 AM
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