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kids and money

Family

Money Rules For Your Kids

All too often, kids end up having to learn from their own mistakes about how to handle money, because nobody formally teaches them how to handle it .  Sure, they can observe their parents’ behavior towards money but it seems to be a rare occurrence for parents to actually sit down with their kids and teach them about proper money management.  As a result, many young adults just starting out on their own end up with overwhelming credit card debt or simply get behind in paying their bills as they haven’t yet learned how to handle the expenses that were once all taken care of by their parents.

In order to prevent your own kids from feeling lost when they first set out on their own, start to teach them when they are young.  According to Jeff D. Opdyke’s article “The 15 Money Rules Kids Should Learn”, there are a lot of things parents can teach their kids at a young age.

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Book Reviews

Read Money Money Money To Your Kids – You Will Love It, Too!

teach your kids about money by reading Money Money Money to themMoney Money Money: Where It Comes From, How To Save It, Spend It, And Make It by Eve Drobot

I often come across books about money in our public library’s online catalogue, and I don’t always pay close attention to what I request.  As long as it’s something to do with saving or investing money, I think it might be worth my time to read.  Imagine my surprise when I took my first glimpse at Money Money Money.  It’s a children’s book!  Although I have to admit I do enjoy reading children’s books from time to time, I really didn’t have a lot of expectations after seeing the cover.

Well, I was proved wrong in judging this book by its cover.  Money Money Money is a fantastic children’s book.  I had no idea that anyone had written such a thorough account of money for children.  It’s full of interesting facts about money, including its history, how its made, and its future.  I can safely say that I absolutely enjoyed reading it and I bet many other adults would enjoy it as well.

It’s full of illustrations and graphics showing all different types of currencies.  There’s a picture of the oldest paper currency ever used as well as the first coins ever made.  Near the beginning, the author suggests that her readers set up a system of 3 jars for their savings.  One jar should be for short term spending such as candy and watching movies, the second jar should be for saving for a bigger purchase such as a video game, and the third jar should be used for saving money to give away to others.

I think every parent should teach their children about money so they have a healthy understanding of how to manage their money when they are on their own.  I highly recommend that you read this book to your children or grandchildren.   I can guarantee that you won’t be bored.  In fact, you may even appreciate it more than your kids. This book will instill into your kids a better understanding of what money is and where it came from, as well as the importance of saving and spending wisely.

To give you an idea of some of the interesting facts found in this book, here are some tidbits:

Did You Know?

*The Canadian one-dollar coin, referred to as the “loonie” was initially supposed to show a French explorer and a Native guide paddling a canoe.  En route to the Mint, they were somehow lost.  The government was afraid of possible fraudulent activity so rather than continuing to use the same design, they decided to use a diving bird called the loon.  Hence, the one-dollar coin is called a “loonie”.

*The Chinese were the first to use paper money and they started using it as far back as 2000 years ago.

*Chinese coins used to have a hole in the middle so they could be tied onto a string.  A bundle of one hundred coins on a string was referred to as one cash.

*Canadians refused to accept a $1 bill printed in 1954 because part of Queen Elizabeth II’s hair around her ear appeared to look like the devil.

Credit Cards

Money Management For Kids – When Do Kids Get a Credit Card?

It’s never too soon to talk to kids about money, and as for a card, it’s best to start them on one before they leave home, say perhaps when they are a junior or senior in high school. Let me give an example.

Before my daughter left for college, she got a checking account, linked to her parents (of course), and then later a credit card with a very low limit. The idea here was for her to learn to pay for things herself before she got out into the big bad world on her own. I like starting them on these things while they’re still under their parents’ roof, so they get practice, and when they decide on the 5 jeans, and then realize there isn’t enough dough left for lunch and gas money, guess what? They brown bag it to school and take the bus! Or they ride with friends, etc. There’s no harm in their experiencing the consequences of overspending while they are with you, and their limit is low.

You can get a card with just a few hundred dollars limit, and then help them pay it off in full and on time every month. This is actually very good because it builds good credit, it gives them practice, and they feel like a big shot! Not only that, they aren’t constantly asking you for to cover the pizza fund. Well, probably they are still asking, but at least your child can see how far a finite amount of money goes, and learn to adjust, or not!

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