Things You'll Need:
- Uncle Eric Books
- Spreadsheet Program
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Step 1
Read classic literature about economics, as well as the modern series of "Uncle Eric Books" with your children in middle school or high school. If you can read them earlier and assimilate them into your worldview, as parents, then the lessons may come easier.
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Step 2
Discuss finances with your children constantly. Don't hide family money issues or fret over money, even when there's none. Spend and save wisely, so kids can learn by example.
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Step 3
Watch economic news reports on different news stations and discuss the language used in each report, looking for fear-mongering, actual facts vs speculation and ethnocentric reporting.
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Step 4
Discuss the financial ups and downs that you've experienced in life, and be open about the lessons you've learned along the way.
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Step 5
Use spreadsheets and downloadable financial planning forms to show how interest rates work. Practice scenarios like "paying for a prom dress with a credit card" to learn how credit can be abused.
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Step 6
Compare the financial losses and gains involved in saving money and earning interest versus spending money on credit and paying interest.
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Step 7
Look into ways of living frugally, and saving or investing a larger portion of your income.
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Step 8
Engage in hobbies that can produce an income. Whether it's selling handmade artwork, coaching or consulting, designing websites or even blogging.
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Step 9
Encourage your kids to immerse themselves into their passions, so that they may become specialists and produce an income doing what they love.
