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Entry bubble Kids and the Economy

By: Colleen | January 07, 2009 | Category: Money

Ok, so the economy has taken the same trajectory as Penn State in the Rose Bowl. This is not news to anyone. While the moneymedia is littered with doom and gloom, how do you explain to your kids what's going on?

It's tough to break down a nationwide situation for a child (shoot, I have a hard time wrapping my head around it), but it's never too early to start teaching them about personal finances and the value of the ol' dollar. Before you know it, they'll be applying for a mortgage—better show them how to be sure they can afford it!

The Jumpstart Coalition for Personal Finance Literacy has a really great pamphlet that covers kids grades K-12, and what they should know about finances, broken down by grade level. For example, a 4th grader should be able to explain the difference between a wage and a salary.

Are you getting hit with the classic, "I really need (*need* being the operative word) a ____" line? Here are some tips for telling your kids the facts about money. It helps you establish a budget for them, and provides guidance on establishing a fair and effective way to set up an allowance system for your kids.

Have your kids questioned the current economic situation? How do you best teach them about fiscal responsibility?

| View Comments [4] | envelope E-mail This Entry | Tags: colleen   economy   kids   personal_finance   recession  

Comments (4):

blue comment bubble Posted by Sunshine on January 07, 2009 at 03:19 PM EST

I have two teenagers myself and they are worried. They are worried about finding part time jobs while in high school and they are worried about what shape the US will be in once their generation has to inherit the place.

I am now trying to further educate them on financial responsibility for the future.

This is a great resource for parents.

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blue comment bubble Posted by Brenda on January 07, 2009 at 04:02 PM EST

I have two daughters, and I bought them and make them read a Robert Kiyosakíi´s book to make them understand the importance of financial education.

Lets teach our kids some finance!

By the way, you can check out what my daughters say in:
http://www.100negocios.com

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blue comment bubble Posted by Arlene on January 08, 2009 at 04:06 PM EST

I found this section that Suze Orman has on Oprah.com:

Money Tips for Parents and Kids

http://www.oprah.com/subtopic/money/parentsandkids

There are great tips of allowances, showing the household bills with your children, empowering your kids to make good financial choices.

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blue comment bubble Posted by biggestclassifieds on January 09, 2009 at 03:55 AM EST

Kids should be taught about how to be thrifty, recycle, habits of savings and caring for the environment.

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