3 Money Lessons Your Kids Should Know
Posted by Deb | Posted in Business Resources, Homeschooling Your Entrepreneurs, Life skills, Resource Reviews, Teaching Home Business, Training Young Entrepreneurs | Posted on 12-11-2009
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Investopedia is an outstanding website for your older teen if they are interested in anything to do with finance. Even if they’re NOT interested, starting them out with their own stock portfolio and $100,000 to play with might get them interested! Of course, if you don’t have $100,000 to let them play with, then maybe Investopedia’s Stock Simulator will have to do.
My middle son was not interested in anything except soccer during high
school, especially not finance. We were racking our brains to come up with anything he might want to do or have an aptitude in besides soccer. So, purely by chance as a school project, I required that he start a portfolio on Investopedia’s Stock Simulator. The rest is history. With very little help from us, he found he had a real knack for making money, so much so he was invited to join one of the ‘elite’ groups in the simulator – and was hooked on finance. Six years later, he’s on track to graduate this Spring with a degree in Business Administration with an emphasis in Finance. His plan is to enter grad school next fall-same subject. Who’d a thunk?
All that to recommend the source our title, 3 Money Lessons Your Kids Should Know. The quality of financial information on that site is some of the best found online. In this article, the 3 main points are refreshingly unique as opposed to the majority of diluted advice directed to parents for their kid’s money mentoring.
Taking into consideration that teaching guidance principles versus rules works much better and adapts well with the wide variety of circumstances in families.
Here are the three key concepts in a nutshell:
- Think of money as stored work. Most kids have no concept of money and what it takes to get it. Put it in terms of labor, like, “Would you trade a weekend of work for that toy?”.
- Money is time. Similar to the concept above, but instead of working with money that has already been earned, you are looking at money that could be earned – or not earned and the results.
- Money has a life of it’s own. Explaining to your children what money does while it’s just ’sitting around’. Read the article.
If any of this has confused you, that’s good, only because I want you read the entire article and check out the website. I think you’ll be glad you did. Open an Investopedia stock account while you’re there – it’s a good time to start, since most stocks can only go up from here (in theory…). Keep in mind you will be asked to sign up for a myriad of items, none of which are necessary for using the simulator.
Other articles there that might interest you:
5 Money Skills To Teach Your Kids
Talking About Money When Times Are Tough
Investopedia is a favorite of ours too, fantastic site to learn about stocks, portfolios, money, etc – even for us!! As a single parent that was *less* than good with money throughout my youth, teaching children about money is CRUCIAL, in my mind. I’m not going to blame parents, schools, etc, but quite simply, I clearly “didn’t get it”, and I am still paying for those mistakes a decade later! And quite frankly, I hate the position I got myself in, everytime I pay off my past debts… I could have used my time/money sooooo much better.
A program was suggested to me by a friend, that teaches kids to be responsible with money, and puts them in control of their money. It’s a fun, interactive booklet + personal website that makes tracking their money fun – more importantly, the tugs on the pantleg going through the grocery checkout and the tantrums have all but disappeared! I guess that’s a little self centered of me… but any parent knows those situations all to well. For the record, I too used to do this to my parents, I was apparently horrible to bring into a store… oops!
I agree that teaching kids about money is as important as anything else we could teach them. Thanks for the input!
How lucky for me to have tripped upon your post. My thirteen year old son was just bugging me the other day about wanting to invest in the stock market. I’ll send him to Investopedia for starters. Thanks.
We’ve been working on this too. Our boys that have any concept of money are ages 4 and 7, but still we need to be better about getting ideas across to them in ways that are age-appropriate.
College freshman are SO ill prepared when entering “real” life. I really hope my kids can have a good understanding of it.
With each gift of money, my children divide it four ways: God (tithes and offerings), Missions, Bank, and Spending. Of course, they always want most of their money in the spending bag. My 17 year old son keeps registers for each division and keeps up with his deposits and withdrawals to the bag.
Sometimes we focus all of our time on teaching academics. Teaching our kids about money is important too!