Jeremy Hobson,Money,Goat

How To Teach Kids Money Smarts From An Early Age

February 7, 2017
in Kids

closemore How can parents teach their children about the value of money? And how early should those lessons start? Financial writer Beth Kobliner (@BethKobliner) joins Here & Now's Jeremy Hobson to talk about her new book, "Make Your Kid a Money Genius (Even if You're Not)." Book Excerpt: 'Make Your Kid A Money Genius (Even If You're Not)' The fact that you’re reading this means you know you should talk money with your kid. Whether the subject terrifies you or intrigues you, or you’re simply looking for ways to broach the topic, the good news is that you’re plunging in. Go, you! A few quick words about this chapter. Though its title might make it sound like I’m expecting you to be a financial drill sergeant (“Now drop and give me 20 compound-interest calculations!”), I’m not. This chapter is the gentle one, meant to ease you into some overall concepts—and context—that’ll help you engage with your child about money. Some points will apply, others might not, depending on your kid’s age, interest level, and even gender. So don’t think that you need to commit everything to memory or take furious notes. The idea here is to put down your highlighter and just read. One final thought before we begin: Money conversations don’t happen in a vacuum. Instead, they pop up at various times throughout the messy business of living. Though it’s become a cliché, most learning happens during these everyday “teachable moments.” The tips below and throughout this book are meant to help you take advantage of these opportunities. So here we go. 1. Start even earlier than you think you should. By the ripe old age of 3, researchers at the University of Wisconsin–Madison report, many children are able to grasp economic ideas such as value and exchange, albeit in a very rudimentary way. They can also delay gratification and make choices. Though basic, all these concepts are important in understanding the role of money in our daily lives. Although there’s no economic equivalent of Baby Mozart videos, no stuffed dolls that look like Warren Buffett to tell your kid to “buy low and sell high” when you squeeze them, that doesn’t mean you shouldn’t pay attention to this stuff...

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