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The Childhood Stage |
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Typical financial concerns in this stage are:
- Learning how savings grow
- Learning what things cost
- Managing an allowance
The key feature of Simple Home Finances Toolkits to use at this stage are:
- Use Investment Modeling to show your children how much money they can accumulate, saving a little each week.
Click on Investment Modeling
to see a picture of the software, look at "Determining
Future Value with Weekly Investments". Encourage your children to save for things they want.
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The very first day your children receive an allowance they experience a part of life that will stay with them forever.
The issue of money is intertwined with life, and as such, learning to manage money is an important aspect of life. So much
of the marketing on TV, in magazines, on the internet and the media in general is targeted to children. Children today must
learn at an early age how to see through what is being sold to them. It seems unfair, but our children must learn to cope
with financial decisions before almost anything else they experience in life. The answer is simple: Teach your children
about money...What it will buy...How much things cost...What a "need" is...and what a "want" is. This can be confusing even for adults.
The first step in teaching children about money is giving them an allowance. Slowly, as they age, parents should insist
their children use their own money to purchase what they desire -- and in turn they will learn from financial decisions they make.
The process of managing an allowance will teach them basic principles of managing money.
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