Thursday, October 2, 2003
More Bang for Your Buck: Teaching Your Kids How To Manage Money
Money doesn't grow on trees. Every child is familiar with those famous words. Well, in tonight's More Bang For Your Buck, we have an invaluable lesson - we're going to show you how to teach your kids the value of a dollar.
You could say he's pretty much your typical teenager except when it comes to managing money.
He says, "If you don't manage it, you'll run out and you won't have any money left for anything else."
But Andy wasn't always this way.
He pretty much learned his cash options after his parents put him on an allowance - 10 bucks a week.
Andy says, "I don't really spend a lot at one time. I save it up and then take it from there."
Experts say the best time to start teaching your kids about how to manage their money is while they're young. They say start teaching them how to save their money and be responsible for their money. Then hopefully that will prevent any financial problems in the future.
And when we say financial problems, we mean financial problems.
Nearly 94 thousand people under age 25 have filed for bankruptcy.
Kathleen Dayof the Enrichment Group says, "If you wait until your kid's in high school or in college it's much harder to instill those values."
Financial Planner Kathy Day of the enrichment group says Andy's parents have the right idea.
You should teach your children early and often.
She says, "Give them the financial freedom to make choices to decide if they're going to spend the money or whether they are going to save it for something they want later."
A helpful method for early savings is to divide the money into three piles.
"One of them is for spending right now, the second one is saving a little longer term, and the third is even for a longer goal."
When it comes to longer goals, also consider teaching your children how to pay with plastic.
Consider investing in prepaid credit cards.
They allow parents to set spending limits and monitor where their kids are spending money.
"Instead having an allowance that's cash, have something that gives them the ability to start learning what it's like to deal with a credit card."
Andy will soon be of the age where he needs a credit card.
But for now, this 13 year-old's developed a pretty simple system.
"If Iwant a video game, I have to pay for it myself."
Experts also suggest talking to your children while you're shopping.
Discuss with them what's a fair price and ask for their opinion whether a product is a good value.
Of course, if you want more info, head to wsvn-dot-com.
FOR MORE INFORMATION:
The Enrichment Group
7355 SW 87th Ave.