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MONEYBy: Nicolya Grigsby

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WHAT WE WILL LEARN

Better understanding of the importance of money management skills for children.

Learn appropriate ways based on age-to develop positive financial skills.

STATISTICS For the first time ever teenagers are

spending as much money on food as they do clothes.

Only 43% of teens have a bank account that they review with their parents

Only 30% of some children/teens are giving some of their money to charity.

Teens and Children are developing spending habits at a younger age.

Over 50% of teens would like to learn more about money managment

WHAT HELPS? Parent’s who model positive financial

habits typically have children who make more sound financial decisions.

Parents should talk to their children about money regularly.

Parent’s can use cash. This helps the child associate cost with items being purchased. Debit/Credit cards can be misleading.

Help to develop and allowance and spending plan for your child.

Talk to your child about the danger of credit cards.

ALLOWANCE Allowance: give (someone) a sum of money

regularly as an allowance(Award for work). This should not be given as a behavior

incentive. An allowance helps to teach your child how

to manage their money. It also teaches the importance of hard work.

Each family can define what is appropriately differently but the key is to be consistent. Financial discussions should happen

regularly to help your child when receiving income.

SPENDING PLAN Identify the childs income (allowance or

money from other sources ) Identify goals . This can include tithing,

saving or a purchase. Review and Revise the spending plan

frequently.

DANGER OF CREDIT CARDS When your child turns 18 they will be

given many opportunities to get credit. Teach them all about credit in advance so that the creditors have a smaller change of convincing them that it is a good idea.

Most children do not understand the term interest. Help to define this and explain the trouble with interest.

Give concrete examples of how interest can affect you.

HOW TO KEEP MONEY FUN BUT STILL EDUCATIONAL Help your child to identify goals that

they are able to reach. Allow the child to control a portion of

their money. If they accidentally overspend do not

give them money back to make up the difference.

Continue to talk about money and allow each experience to be a learning opportunity.

Make money fun, so that children can start to develop a positive attitude about money.

BOOKS I HIGHLY RECOMMEND

Financial Peace Jr. By: Dave Ramsey*This book helps to teach your child appropriate ways to handle

finances.

• Smart Money Smart Kids By: Dave Ramsey

*Teach parents how to raise money-smart kids in a debt-filled world.