Published On: December 3, 2012
By Gregory Downing
• Take your child to open bank accounts, both checking and savings. She needs to understand how banks operate.
• Make it clear that the savings account is sacred. It’s for real emergencies—not impulse buys. (Teach him to avoid making decisions like, “I want that new skateboard and I have money in my savings account, so I’m going to go withdraw it.”)
• Get your child a credit card and teach her how to use it. Enforce strict boundaries on how to make the card an asset rather than a liability. Too many parents assume all debt is “bad” while, in reality, businesses depend on it to operate.
• Attend a county commission or school board meeting and bring your child along.
• Help him set up his own budget and stick to it.
• Find ways to pay her for being valuable to you and your employment.
• If your kids mow lawns or babysit or provide some other service, teach them that they must run their business like any self-employed person. Hold discussions on supply and demand, how to find customers, how to set prices, and how to add value so they are branded as the best in their niche.
• Show your child how deductions work when you invest.
• Invest in some small penny stocks that won’t cost him huge if he loses but will teach him the ropes before he has to make big retirement investment decisions.
• Teach kids healthy attitudes toward money. It is not scarce; nor is it “the root of all evil.” Money is inherently connected to how much and how well you meet the needs of others. The more you share your time, talents, and expertise, the more abundantly money flows into your life.