Comments on: Easy Conversation Starters About Money with Your Kids

By: Anne T Meyers

Anne T Meyers — Tue, 14 Apr 2009 14:19:20 +0000

I have to agree with what Stephen commented: Conversation is too abstract. I’m an college professor, and even for 20 year olds it’s too abstract. You need games. When your kid says “I want”–and you may have to wait, what, 15 more minutes for that opportunity–you surprise them with a riddle.

Also, I wouldn’t get into control battles with them. Maybe don’t say a word when they say “I want”–unless it’s a joke response, such as “And I want a foot massage while Thai food is being served to me on a beach chair, sand in my toes, sun on my face. Trade you!” The time to bring up the game that corresponds to the “I want” is at a different time. Catch your kids off guard. They’ll be more likely to play along and not mope. Remember, your opposable thumbs are older than theirs, and you can still outsmart them.

You can expand the play a game idea to many money lessons for kids: comparison shopping, saving, investing.

I write a blog called AskAnne, devoted to teaching kids about money. There are some games and challenges to try out with kids posted.
–Anne

By: Ericka

Ericka — Sun, 12 Apr 2009 00:36:01 +0000

My parents taught me about money as a kid. Starting at the age of three, each week I received a star on a board. I could earn extra stars with particularly good behavior or helping out with chores. When I wanted something at a store I had to spend my stars, which my parents would promptly remove from my board.

This gave me a visual understanding of the cost of things, at an age when I was unable to understand the abstract concept of money. It also had the added advantage for my parents of steering my spending habits, a book may be one star but a toy they did not want me to have could be 10 stars, even if their price was the same.

When I was 5 we graduated to an allowance, that was paid in coins, no more stars. It was done to be certain we could count and add up different values. My parents still steered our purchases, but by this age we understood price tags and money; they would offer discounts to things they found to be beneficial.

By the time we were 7 we had a regular allowance, in paper bills; I believe it was $2.00 a week. We only got a raise in our allowance when we asked for it and could demonstrate why it was warranted. These funds were for all our “fun” purchases.

At 9 or 10 we took over our quarterly clothing budget….the first year was funny…..think socks with holes darned by us, with expensive designer jeans. I think this was the best lesson they taught us and let us get into our own trouble. To this day I remember to take care of all basics, before any luxuries. I am excellent at determining the difference between a need and a want.

This was excellent training for me.

By: Erin

Erin — Fri, 10 Apr 2009 19:14:40 +0000

My father taught me one of the best financial lessons of my life when I was in Junior High using “I Want.” I just had to have a neon yellow Tommy Girl windbreaker for $80 (which of course I wanted him to pay for). He was a banker for 20 years so he decided he would lend me the money, and not even charge me interest. What a deal! The only problem is, the only income I had was babysitting about once a month for between $10-$20. It took me almost a year to pay off that stupid jacket, and it was the best lesson I ever learned. I’m 24 now, and I think about that jacket every time I make financial decision!

By: Patrick

Patrick — Thu, 09 Apr 2009 18:36:05 +0000

I agree completely with you John. Kids don’t understand the value of a dollar and keeping open communication with them about finances can really make a difference for them. It will lesson the shock when they get out on their own and have to pay bills and a mortgage/rent.

By: Jim

Jim — Thu, 09 Apr 2009 02:12:14 +0000

What did you do with them?

By: Eric

Eric — Thu, 09 Apr 2009 01:14:23 +0000

Junior Achievement is a great organization. I had a lot of fun helping JA out also.

By: James

James — Wed, 08 Apr 2009 21:42:30 +0000

Our Daughter is very young. We try to teach her by letting her earn money doing little jobs around the house. However when we do the bills we tend to put her on Noggin and try to crunch the numbers. Its complicated to us, so I hope we can get it thru to her better than my parents got it thru to me.

By: Stephen

Stephen — Wed, 08 Apr 2009 20:46:59 +0000

I find that it’s easier to teach with actions and not with words. Kids see what you do and they learn from it. Sitting down and talking to them is probably too abstract.