Thursday, April 10, 2008

Teaching your kids about money.

I have a daughter and always tell her that we are not rich. Tell kids about family finances in age-appropriate ways. Around age five, children can understand taht the family must earn money to buy what we needs. Try grocery shopping wuth kids, expalining the budget for that trip, then showing them how you use the money. By age eight or nine, most children can understand taht spending involves prioritizing. try lining up 100 pennies, saying they represent your monthly family income and showing how much goes for fixed costs like mortgage and food and how much is left for other things.