Educating your children about finance (Part 1)

I decided to put together some information on how to educate children and other about money.

This will be the first of many installments.


Most of the links will simply be websites and exerpts from the sites. There is a lot of really valuable information out there.


18 Ways For Children or Grandchildren to Learn The Value of Money
Best comment:
"18) Using a calendar, establish a regular schedule for a family discussion about finances. This is especially helpful to younger children. the time when they count their savings and receive interest on their savings. Discussion topics should include the difference between cash, checks and credit cards and also wise spending, how to avoid the use of credit and the advantages of savings and investments growth. With teenagers also discuss the effects on the economy - of inflation versus deflation - on how to economize at home, and alternatives to spending money. Some examples are borrowing an item, bartering, making it yourself, or a one-time rental or buy used, etc."

Another one of my favorites...it is all about starting the savins as soon as possible!
6) When giving children an allowance or income, give the money in denominations that encourages saving. For example if the amount is $5, give out five $1 bills and encourage at least one be set aside in savings. (Just saving $5 a-week at six percent interest compounded quarterly will total about $266 in a-year, $1,503 in five years and $3,527 in ten years.)

Their 10 Commandments.
Some of the best:
3) Begin saving early to take advantage of compound interest.

7) Focus on the relationship between the risk and projected return of investments.