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ADULTS – Money Management – Top Ten Money Mistakes Passed to Kids
There is a great article by Jenna Goudreau on the Forbes.com website about the top ten money mistakes parents pass on to their children. You can read the full article at Top Ten Money Mistakes Passed to Kids or a summary of the top ten mistakes as follows:
1. Money Silence
Parents do not talk about their family finances or how money works with their children.
2. Credit Card Magic
Parents buy things with a magic card and kids don’t understand how credit cards work and why good credit is important.
3. Not Saying No
Parents need to teach their children that there are money limits in life and everyone must live within their means – sometimes this means saying no.
4. Lying about Money
Parents can mistakingly teach their children that it is okay to lie about money even though a family budget with spending rules has been established.
5. Actions Betraying Words
Parents often make the mistake of saying one thing and doing another sending mixed money management messages to kids.
6. Overspending On Entertainment
Parents may unconsciously pass on the mindset that it is necessary to spend a great deal of money to have fun and be happy.
7. Not Saving Enough
Parents should be a positive role model for saving money regularly – including having enough money for emergencies.
8. Unexplained Money Tension
Parents may inadvertently teach their children that arguing about money can lead to conflict so it is best to avoid the topic all together.
9. Allowance Without Enforced Rules
Parents can teach their children a lot about money with an allowance program, as long as rules are set upfront and followed.
10. Gendered Money Divisions
Parents need to explain how they have divided up family money management responsibilities so there is no gender bias based on strengths and weaknesses.
ADULTS – (Introduction Ages 2-4) – Money Management – Preschooler Guidelines
With preschool kids ages 2-4, you really have to start slow and simple. But the experts say if kids are old enough to want things and ask for them, then they are old enough to start learning about money. It won’t take kids long to learn that money can get them what they want.
For many kids, they learn about money by sitting in a shopping cart and observing adults. Don’t overlook the everyday learning opportunities to talk to them about what you are doing as you are shopping and checking out.
The easiest thing for kids to understand at this age is to actually see the money, especially as it is exchanged between an adult and cashier. So, for smaller purchases, you should use cash instead of a check, credit, or debit card.
This age range is also a great time to read to kids. Money books with lots of pictures (interaction is even better!) and simple stories work best.
There are some really good preschool money apps for the Apple iPhone, IPod Touch, and IPad Tablet that can be purchased at iTunes. Alternatively, good applications that can help preschool children learn about money that run on hardware devices using the Android operating software can be purchased at Google.
Once kids can count they can start learning about the value of money. Ex. A nickel is counting from 1 to 5.
As kids feel more comfortable with money, you can help them “earn” money by participating in learning activities while saving up.
Preschoolers usually can only wait a few days to save up and buy something. Obviously, start with something very small and work your way up as the child ages and understands more about money and simple money management.
If the child can’t wait for an item, and as a result, doesn’t have enough money saved yet, make sure you don’t give in and make up the difference so the child can buy the item now. It is critical that kids this age learn how to delay instant or short-term gratification, especially when it comes to money.
Bottom line: Make sure learning about money is fun!
References
1. Clark Smart Parents, Clark Smart Kids (Howard, 2005)
2. Kids and Money (Searls, 1996)
3. Money for Teens (Shelly, 2001)
4. Money Doesn’t Grow on Trees (Godfrey, 2006)
5. Raising Money Smart Kids (Bodnar, 2005)
KIDS – (Beginner Ages 5-9) – Money Management – Activities
Important lessons to teach preschoolers (ages 2-4) about money include: money buys things, identifying money, counting money and saving and spending money.
When children are in primary school the focus changes to adding and subtracting money, comparing money, equivalent sets of coins (2 nickels = 1 dime) and more.
Here are some links to beginning money activities that are appropriate for children ages 5-9. The links are in no particular order. Check them out and let us know what you think!
Money Word Problems
Money Lessons
Lemonade Stand
Counting Money Flashcards
Money Jingle
Adding Money
Subtracting Money
Counting Money
Compare Money
Equivalent Sets of Coins
Make Change Jingle
Money Matching
Do you have any favorite money activities for kids age 5-9 at the primary school level?
ADULTS – (Introduction Ages 2-4) – Money Management – Links and Games
In another lesson we learned there are a few areas of focus to help preschool children learn about money: 1) Money can be used to buy things. 2) Learn how to identify money – dollars and coins. 3) Learn how to count money. 4) Learn to save and spend a small amount of money for inexpensive items that are very important to the child.
There is already some good articles on the internet about the best ways to teach preschoolers about money. Click on the links below to learn more:
Five Money Lessons for Preschoolers
How to Introduce Money to Preschoolers
Economics for Preschoolers
Tips for Teaching Preschoolers about Money
How to Explain Money Problems to Your Preschooler
Teaching Preschoolers About Money
Here is a short video that helps adults understand how to introduce money to preschoolers:
How to Introduce Money to Preschoolers
Here is a great Sesame Street magazine (PDF) called Talking Cents for Pre-School. Click on the link below to download the magazine (WARNING: The PDF file is large so it will take a while to download – be patient!)
Talking Cents for Pre-School
Here are some existing online games that you can use to help teach money basics to the preschooler(s) in your life:
Nickjr Money Games
Chinese New Year Coin Catch
Blue’s Counting Cash Register
Do you have other suggestions to help preschoolers learn about the basics of money?
KIDS – (Beginner Ages 5-9) – Money Management – Online Games
A good way for kids to learn about money management is to have them play online money games.
Here are a few free online money games recommended for primary school children ages 5-9.
Click on the desired link below to play the online money game.
The links have not been arranged in any particular order.
My Savings Quest
US Mint Kids Games
Sports Games – Financial Soccer and Football
The Great Piggy Bank Adventure
PBS Kids Mad Money
Smart Start for Kids Money Games
Club Money Mammals
Junior’s Clubhouse Adventures
Dora’s Carnival Adventure
What did you think of the online money games? Are there other money games you would recommend for this age group?