We are pleased to launch a new approach to the content we post to our site this month. And hope to post a new topic in this category on a monthly basis moving forward.
Namely our new Kid’s Corner which may help you to broach the subject of money and finance with your children. We will span age groups so please be patient if it doesn’t immediately seem relevant to you and yours.
To start we will focus on a question almost every parent has been asked…
How Much Money Do You Make?
Simply feeding a figure to younger children will more than likely supersede their financial acumen. At the end of the day a child in elementary school is unprepared to differentiate between a $10,000 per month income and a $100,000 per month income.
Rather than focus on the figure itself, instead tell them that mom and dad make enough to care for the family and its needs. Needs include the house, cars, groceries, going out to eat, to the movies etc. In addition, mom and dad save a little bit of what they earn each month to plan ahead for unforeseen expenses, vacation, for their education and for someday in the future when they don’t want to or can no longer work.
This is a great segue way into a saving vs. spending conversation and how much certain things cost. But that is a topic for another day. If your children are old enough to earn an allowance it is a great time to start educating them that a 10% rate of savings is a good start. $1 goes into the piggy bank for every $10 they receive for doing their chores. The next time they want a new Barbie doll or video game they can buy it for themselves. And often times mom and dad may even pay for half!!!
We hope this is helpful, and please do not hesitate to send questions your children ask you. We’ll be sure to add it to the Kid’s Corner in the coming months!
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