How to raise financially savvy kids

February 7, 2017
in Kids

Wondering why our kids are not so great with money? Just look in the mirror; it's because adults are often financial train wrecks themselves. Even so, all is not lost. You can still try to instill your children with the right lessons about spending, saving and investing, to prime them for a more secure financial future. That is the cause of personal finance guru Beth Kobliner, whose new book "Make Your Kid a Money Genius (Even if You're Not)" has just been released. She spoke with Reuters about how to equip kids with money smarts. Q: Is there a time in a child's life that is best for giving them money lessons? A: Start earlier than you think, because by age three they start getting money concepts. Keep your lessons age appropriate. Using anecdotes is helpful, because we all like stories. Show them the numbers with online calculators, and how savings and interest could one day get them to a million dollars. Q: You say that chores should not be tied to money and allowances are not a great teaching tool. Why? A: Tying things like making their bed to monetary rewards is a problem. You are paying a child to do things they should be doing anyways, and then they will start negotiating with you all the time. It can end up backfiring for parents. Allowances start with good intentions, but then people tend...

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