Teaching Kids the Value of Money
March 22, 2007
Our third grade niece spent a few days with us recently and got me thinking about kids and money. Our little guy isn’t a year old yet so he’s too little to understand the value of a dollar. Although I do occasionally remind him as he lays on the changing table that if he had better bladder control we’d save money on diapers 🙂
I know what kids learn in the early years of childhood is crucial to their mental development. I wonder what age is the right time to begin developing their financial skills. I don’t want to bore my son to death with talk of compound rates of growth and debt-to-asset ratios but on the other hand I want to make sure he is financially knowledgable and responsible.
I ran across an article in Business Week last night, The Five Rules of Money for Children, that gave five basic money principles to instill in your kids.
1. A penny saved is a penny earned.
2. Stick to the budget.
3. Learn the power of interest.
4. Stay out of debt.
5. Giving back is the best gift.
Just think, if everyone had learned these concepts at a young age what a different situation our country would be in financially. I’ll do my best to pass these onto my son, I only hope that he’ll listen to his dad 🙂
All posts by Ben Edwards