October 29, 2007

Teaching kids about finance

In order for the youngsters of today there is a good case for parents to teach them early in all aspects of financial matters. There are some simple tips that can show you how to show the kids how to be financially aware.

Practice what you preach, its no good saying one thing and doing another.
Pay pocket money, this will allow them to understand about spending.
Make sure that they save money, starting early is the best way.
Explain about goals, like should they buy a chocolate bar now or save the money and buy something better later.
Needs and wants, kids need to know the difference between what they want and what they need.
Keeping a budget, if they write down what’s coming in and where it’s going, it looks better or worse.
Allow them to make mistakes, it’s a hard lesson but it is never forgotten.
Teach how interest works, they need to know how much interest is payable on borrowed money.
Sales tricks, make them aware that what looks like a good deal, may not be after all.
Credit cards, the easiest way to run up a load of debt, explain how they work.

The kids should now be on the way to being financially aware now.

Source [Deal Locker]