Comments on: How Do I Teach My Child About Money?

By: Bill Dwight

Bill Dwight — Tue, 23 Feb 2010 07:01:01 +0000

I think allowing your child to learn-by-doing (including mistakes.) vs learn by (eyeball-roll inducing) lecture is the most effective way to go. Some great tips here on approaches and tons of valid variations. One approach to consider when the physical jar approach runs out of gas (or if you want more flexibility) is the “virtual family bank route”.

And a big “ditto” on the Giving jar – that’s a great habit to get into early on.

By: MoneyNing

MoneyNing — Tue, 23 Feb 2010 00:47:47 +0000

Good point.

Perhaps retirement and taxes should wait, but I think that the topics (especially retirement) should be introduced to them before they have to pay Uncle Sam on their own.

The younger they are, the more difficult it will be for them to grasp, but it’s important enough to start early that they should be thinking about it as soon as they start earning income.

Maybe not when they are kids, but I feel that there’s a place for this by the time they become young adults.

By: Alcoholic Millionaire

Alcoholic Millionaire — Tue, 23 Feb 2010 00:37:18 +0000

I’m yet to have children but I tend to agree with Dan. Giving seems to be really easy to overlook and can be the absolute most valuable lesson that could be given to a young child. I’m pushing 30 and am slowly understanding the “Giving” jar myself

By: Financial Uproar

Financial Uproar — Mon, 22 Feb 2010 23:18:27 +0000

I have a bit of a problem with how complicated the system is. An allowance is okay, but 4 jars? Retirement? Come on. Let kids just be kids, there will be plenty of time for them to learn about saving, taxes and the like. Your spending habits will have a great effect as well. My Dad is cheap; yet I’m cheap as well. I wonder why that is?

Your attitude should be commended, I just think the methods are wrong.

By: CD Phi

CD Phi — Mon, 22 Feb 2010 20:56:47 +0000

I am all for teaching kids about money so why not teach them how hard it is to earn money which will ultimately curb their wild spending habits? Allow your kids to make a lemonade stand or even some schools offer fundraisers where you sell things to families and friends in order to generate a prize at the end of the term. Children will see how much it takes to earn even $1 and that will help them be more conscious about their spending habits next time they visit the toy store.

By: Prakash Dheeriya PhD

Prakash Dheeriya PhD — Mon, 22 Feb 2010 20:32:00 +0000

Wow, this topic is so dear to me. I have written 20 children’s books on that precise subject.
There are several ways you can teach them about money. The key thing is to start them very early, before their entitlement mentality sets in. Allowances are a good way to teach them too. But use everyday moments to teach them about money.

By: craig

craig — Mon, 22 Feb 2010 20:02:35 +0000

As a child growing up a lot had to just do with my parents mentality towards spending and the restrictions they had with me. Also I had an allowance with helped me on my own.

By: kenyantykoon

kenyantykoon — Mon, 22 Feb 2010 16:48:13 +0000

idont have them but when i do i will instill entrepreneurship and a strict/healthy work ethic in their heads at a very early age. the world does not have enough of this type of people

By: MoneyNing

MoneyNing — Mon, 22 Feb 2010 15:53:03 +0000

Wow the “jars” approach really seems like a popular one. I think you’re right in that retirement is something that can wait because your kids are probably too young to understand this. It can also be grouped under savings too.

By: MoneyNing

MoneyNing — Mon, 22 Feb 2010 15:44:52 +0000

I think the 3 jar system works just as well. The tax jar is more a way to let them know about where money comes from and how the real world works. (who pays for the roads, school system etc etc).