| The Importance of Teaching Children Finance | | | | because they want the instant gratification of |
| Literacy | | | | buying things they want instead of saving until |
| I feel it is very important to teach children about | | | | they can afford them. Previous generations |
| financial matters. One reason that parents do not | | | | started with small houses and cars and worked |
| teach their children about money, is because they | | | | and saved and gradually improved their way of |
| are not sure they know how to handle money | | | | life. Many people today, start first jobs and |
| either. It is one of the things that is not always | | | | expect to have a big house and expensive cars |
| taught in school. We earn degrees in order to | | | | right away. They figure if you can afford |
| earn a living but are not always taught how to | | | | payments you can afford it. But that isn't always |
| handle the money we earn. | | | | the case. And living that way, you have no |
| It is important to start teaching children about | | | | money for savings. It is important also to have an |
| money when they are young. You can use the | | | | Emergency fund. Especially in today's economy |
| world as your financial classroom. Real life triggers | | | | with the way the job market is. People get into |
| lessons you want to teach your child, and since | | | | trouble when they get used to living paycheck to |
| you are probably handling money regularly in front | | | | paycheck on two incomes and then if one (or |
| of your child, stop and take two minutes to | | | | both) of them lose their jobs then they will be in |
| explain what you are doing. | | | | trouble. |
| In the book "Money Doesn't Grow on Trees" by | | | | Another source for information on teaching |
| Neale S. Godfrey there is a story about a father | | | | children about finances is Dave Ramsey has |
| and his son. He had taken his children on a trip | | | | books directed to kids and a Financial Peace Jr. kit |
| across the country to see their grandparents. | | | | with a book about saving your money and charts |
| Everytime they stopped to eat, one of the sons | | | | and envelopes to manage their money. One of his |
| was always straggling behind. Finally, when they | | | | principles is to Save, Give and Spend. His program |
| were almost home, the father asked him why he | | | | has envelopes labeled Save, Give and Spend. |
| always late. He said he was picking up the money | | | | In the book "Money Doesn't Grow on Trees" |
| his dad kept forgetting on the tables. The father | | | | some of the chapters cover How to teach your |
| realized to his son his leaving money on the table | | | | children the basics of money management, When |
| looked like he had forgotten his money. | | | | to start your child on an allowance, How to use |
| Another big issue, is teaching the difference | | | | the World as your Financial Classroom. It also has |
| between wants and needs. I know when you are | | | | games for different age groups on teaching |
| a child it is hard to know the difference, but if we | | | | children about money. |
| don't teach them when they are younger, it is | | | | In closing, I feel the most important issues are to |
| harder when they are older. That is part of the | | | | teach children to pay themselves first and save |
| problem how people spend money now. They | | | | some of what they earn, difference between |
| grow up not knowing the difference between real | | | | wants and needs and the power of compound |
| wants and needs. Then get into trouble with debt | | | | interest. |
| because they feel like they deserve anything they | | | | It's not How much you earn that matters, it's |
| want. | | | | how much you Spend!! |
| Many people put their financial lives into jeopardy | | | | |