Why Should We Teach Children About Money?

Dear fellow Concerned Parent,

I am constantly asked why is it so important to teach our kids about money?

Shouldn't we just let our kids be 'kids' and let them worry about money after they grow up?

These are very good questions and I completely understand why concerned parents ask this.

We assume as parents that our schools will teach our children everything they will need to know to be able to become independant young adults but we forget that 'teaching children about money' is not in the curriculum.

Now let me give you statistics that may shock you:

1. Did you know that the number one reason that young couples divorce today is because of money stress?

2. Did you know that the majority of bankruptcies today are applied for by adults 25 years and younger?

Do you want your children to end up as one of these statistics?

No, I didn't think so, and neither do I.

That is why I now am actively teaching my children about money.

So where do you begin?

I simply suggest you begin by encouraging your child to come up with a creative way to earn their own money, so they will feel the pride they deserve from their own efforts.

Then I suggest you encourage your child to split their money into four categories (or piggy banks):

1. Savings (for that rainy day emergency)
2. Investings (you can start them off with simple small stock investments in quality stocks)
3. Charity (teach your child now while they are young to give away some of their money to help others so they won't turn into Scrooge! AND they will get an incredible sense of responsibility toward humankind and nature, and that will only strengthen their characters and help them in their day to day struggles in life)
4. Spend the rest, FAST! (let them feel the rewards of their harded earn cash quickly so they stay excited to continue along this entrepreneurial path.)

I hope this has been helpful and look forward to hearing your comments or other suggestions.

Cheers....Amanda van der Gulik.....Excited Life Enthusiast!

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For '50 FREE Money Making Ideas for Kids' click here.
Help your kid find some easy ways for kids to make money.

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The Money Mammals - Teach Children About Money Through Music!

I have come across a great site with incredible tools for teaching children about money.
They are called The Money Mammals.

Here's what kids are saying about money.


And here's an example of how The Money Mammals can help teach children about money.


Here's to our continued success in teaching kids about money!

Cheers....Amanda van der Gulik....Excited Life Enthusiast!

"Teaching Your Kids The Importance Of Saving

It is my opinion that, as parents, we have an obligation to teach our kids about saving and financial matters in general. I believe that teaching our kids about saving and financial matters is just as important as teaching them honesty and integrity, and even sexual matters. Yet, as is the case with sex, many parents are uncomfortable teaching their kids about financial matters.

I believe this is a big reason why we have a savings crisis in America. In the first half of 2005, the national savings rate fell to ZERO, down from a high of over 10% in the early 1980s. By the end of last year, the national saving rate had fallen into negative territory, -0.5% according to the Commerce Department. The Commerce Department calculates the savings rate by taking the difference between after-tax income and all expenditures, including housing, food and clothing.

Every three years, the Federal Reserve conducts an in-depth consumer survey called the Survey of Consumer Finances. These surveys glean lots of data on trends in consumer saving and spending. The latest report for 2004 found that only 40.8% of all households actually save on a regular basis, and in reality, that number may be high. In addition to the negative savings rate, the American Bankers Association reports that the average US household has over $8,000 in credit card debt. Credit card abuse by college students is epidemic.

I could go on with troubling statistics on debt and the lack of savings, but the point should be obvious. If we are going to educate our kids about the importance of saving, we must not only teach them, but we must also practice what we preach. Kids whose parents don't save are not likely to be good savers either."

I found this article on localhs.com and really liked how he spoke to us about kids and money.

I hope you enjoyed this one.

Cheers...Amanda van der Gulik....Excited Life Enthusiast!