Money is only necessary as long as we devalue ourselves enough to think that we need some sort of pieces of paper to organize ourselves. Have some faith in one another. Have some faith in yourself.

It has been discovered that reward systems for creative thinking inhibit progress and performance with anything requiring cognitive skills more complex than simple math. Instead, create opportunities that encourage creative higher level though processes. For example, picking a day of the week to allow your child (or even better, children) to do anything creative that he or she wants with whomever he or she wants with the caveat that the results of his or her (or their.) work must be shown at dinner (<- bonus family time here) will give your child(ren) a chance to show off their creative side to you. Everyone has a deep-seated need for affirmation and acceptance within their social circle, and it's this psychology that will encourage your child(ren) to challenge and improve their creative skills. If you and your spouse spend the day working on a creative project of your own with the same show-and-tell caveat, it will further encourage better and new ideas within your child(ren).
Encouraging creativity with a reward system has the possibility of creating disappointment with the increasing lack of rewards for creative behavior and thinking as they mature.

May

Ours is very young now but we plan to follow most of these ideas, especially about the book and news.

However, your advice is great and teaching kids about money is very important. The only thing to ensure is to present each of these items when the time is right and when the kids are ready. Pushing to hard or too soon will only do the opposite.

Great post.

I was thinking mostly of things like food, and clothes.

She answered with her usual, “that’s a very good question. I don’t really know the answer. What do you think?”

I hated when she turned things back on me like that, but it did make me think more about it.

I was probably 7 or 8 at the time, and it wasn’t until MUCH later in life that I learned not just the importance of money and finance, but the purpose behind it.

I don’t have to imagine being a parent, and I have done my best to explain to my children (both under 6) basic economics in terms they can understand.

A while back my daughter asked why we had to pay for apples at a local apple farm. I explained to her that the man who owned the farm spent money and time to grow the apples, and that when we give him our money for the apples, he then has money to feed his family or grow more apples.

It doesn’t need to be a dissertation of economic theory, but it’s amazing how much they will figure out on their own when you put things in terms they understand.