How do you raise Smart Money Kids?

• Start young. Your kids will learn from observing you and your relationship with money. If they see you worried and stressed about money, they'll learn that behavior. Model a healthy relationship with money.
• Involve them in the monthly financial planning.
• Teach them to save, share, and choose.
• Educate them about the following financial terms:
  • Income
  • Expenses
  • Rainy-day Fund
  • Value
  • Net Income
  • Opportunity Cost
  • Compound Interest
  • Budgeting (for the toys they want)
  • Delayed Gratification
  • Needs vs. Wants
  • Gratitude
• Take them with you when you go to the bank. Teach them about banking and encourage them to put their piggy bank money into the bank each month. Encourage savings by providing matching funds for every $ they save for their account.
• Demonstrate the importance of giving back, tithing, and philanthropy.
• Provide an allowance as a reward for helping out around the house.
• Encourage entrepreneurship. Open the lemonade stand, sell crafts, etc.
• Teach them the finance lessons you wished you had known.
• Encourage them to save and invest.
• No one wants to raise a spoiled brat, but those who have everything given to them and don't understand the value of money often end up spoiled. Learn to say no.
• Practice long-term thinking.
• Teach goal setting.
• Implement your values, yet encourage them to develop their own.
• Take them shopping. Teach them about the business and the economy.
• Read books together, lots and lots of books, such as "One Hen."
• Be thankful for your job and talk about it in positive terms so that your kids grow up looking forward to work not dreading it.
• Pay your kids to do work around the house. As soon as they have their own earned income encourage them to open a Roth IRA. The earlier they start saving and investing the better off they'll be.
• Teach responsibility, integrity, ethics, values, etc.
• Most of all, make learning FUN! Encourage exploration and growth!