Tools for Teaching Money Management
Financial gurus Dave Ramsey and Rob Kiyosaki agree on very little, but they both agree that money management education in the U.S. is woefully lacking. Whether you're learning on your own as an adult, or teaching your child at home, you can find resources to help you learn. One of the frustrations for Ramsey, Kiyosaki and their peers is how rich the available tools are -- it's just that not enough people use them.
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Video Games
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Many video games include a money management aspect. These include role-playing games where the characters must spend treasure for more tools, strategy games where you manage a budget for an army, kingdom or company and even video games designed to specifically mimic adult money management and business practices. The classic "Lemonade Stand" is an example of the latter category.
Banking Tools
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In their ongoing quest for greater market share, many of the major national banks have responded to the recent recession by providing free budgeting and money management tools to their account-holders. In some cases, these are automatic applications that come as part of Web banking tools. In others, it's a set of pamphlets or even a short training meeting with a personal banking. Some banks also have specialized accounts for children that included resources and prizes that teach and reward smart money management decisions.
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Money Software
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One way to learn about the consequences of money management decisions is to make money management decisions. You can do this with a copy of any brand of money management software. Put in fictional numbers and watch the accounts grow or shrink in response. You can also buy forecasting software -- either professional grade business tools or games -- that specifically mimic the performance of accounts in response to your decisions.
Cash Flow Quadrant
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Rob Kiyosaki's "Cash Flow Quadrant" is a board game intended to teach adults and children about how media presentation of the "good life" encourages decisions that actually lead to higher debt and harder work. Game play resembles the games Monopoly and Life, but play decisions specifically underscore the importance of saving money and the value of avoiding unnecessary purchases.
Professional Services
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Any discussion that includes Ramsey and Kiyosaki would be incomplete without a mention of professional money management coaches. Members of this industry advise people on how to reach their financial goals and provide accountability to help them stay on track. Although money coaches rarely have anything new to bring to the table, people who have trouble staying on track by themselves can find them well worth the investment.
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References
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