How to Raise Financially Smart Kids

It is important to raise financially smart kids. If we want our children to be financially secure adults we need to make sure we raise financially smart kids now.

Difficulty: Moderately Easy

Instructions

1. To make a financially smart kid you need to give them an allowance based on work they do. Don't just give them money for nothing. They need to earn it. A financially smart kid understands they need to work to make money.

2. Make the kids use their allowance to buy things they want. I mean anything other than the basics. Let them understand what things cost and what the effects are of spending money on one thing and then not being able to buy something else they want. This will raise a financially smart kid that understands the value of money.

3. 
    
   piggy bank

   Encourage your children to save money. Find things they really want but can not afford and encourage them to start saving at least a part of their allowance each week so they will be able to buy it later. This will help you to raise a financially smart kid buy helping them to see that if they really want something sometimes they have to save for it.

Resources

• Stay at Home Dad
• Growing Money: A Complete Investing Guide for Kids
• Financial Peace Jr.: Teaching Kids About Money!