Do You Teach Your Kids About Personal Finance?
Seven mistakes parents make teaching kids about money
- Duration 6:48
- Date Nov 28, 2011
Seven mistakes parents make teaching kids about money
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All right so look at we have to Sergey -- our kids about money so well they're not broke when they get older like myself really and is with a -- editor in chief of learn best dot com.
And the city is really geared towards teaching people about money and personal finance.
Absolutely -- other leading personal finance site for women online and we help women at every stage of their lives from.
Having -- -- -- retirement.
And we offer content tools and support to help do that and we just want to say is up for -- actually.
-- we just launched last month which are really excited about to help counsel planners with managing -- finances and their kids because of what's.
What many should know and if they don't already is that women control most of the personal finances these days absolutely about 80% of household finances and America controlled by women.
Price -- -- make all the decisions and I'm a single mother side certainly make all of them into well yeah.
You know -- so we.
And -- weren't growing -- by the second and not just the single mothers of the world but the decision makers in the world.
And so that being said and often -- a -- on our shoulders passes on to markets absolutely.
And the thing is I don't know about you that you know most people feel like their parents didn't teach them -- about -- that they were uncomfortable they didn't know how.
So we really want to make it easier for parents to talk to -- can my generation my family's from Sicily very tiny and talk about money.
So write them and it a lot of immigrants have and I think that feel growing up that.
-- need to know about money -- ME ING just came out with a study that one out of three parents is more comfortable talking about.
Money than about sex or drugs I believe -- I believe it.
I believe it's okay so here we are our generation.
Much more and -- into than our parents who dare I say and so.
It's an interesting generation I have three kids at home.
-- night and seven and when they were little -- remember someone in the same to me accident and have money for something and -- -- just -- machining getting.
Through rate can get -- -- -- -- didn't say in an -- -- emerging that's right and so that's one of the mistakes that parents think about money and we all make them.
But one of them is talking to little hot money you -- this with your parents.
Not explaining -- -- comes from money just doesn't fall from the -- you have to deposit money to withdraw money.
So one of the things is sort of keeping.
The kids behind iron curtain that money is something's not bother them with.
Show them little by little ways that you make decisions about money.
That you have to look modest and -- deposit this check and we can we have to take out less than what's -- That's good little -- paying for everything now is on your list.
I find idea that my kids will get money from somebody to go buy things and -- -- putting the bank I will -- -- for.
Right so it's probably wrong right I should probably be letting them purchase thinks of the understands yes and think what you tended to is that if what they want is more than what they have.
They can just contribute a little bit so they get used to the feeling of managing their own money.
See if they want at all that's you know ten dollars and they're at the age where -- two dollars an appropriate contribution they have got their piggy bank you take it out you make a trip to the -- to gather.
You haven't take up two dollars and put it on the counter and they feel part of that ownership of the -- that's cute idea actually -- when is it well when -- old enough to start hearing about this.
You know -- really very -- -- -- that we think around the age of six they're really ready to have an allowance and start contributing.
Now -- -- Lance is not a good idea.
Well that I the corollary is that that we believe -- invest is that.
Allowances should be -- to -- so tourism really about.
Responsibility in the household and you point your own -- -- -- -- allowance that allow Citi to learn financial responsibility.
The other thing is it's really kind of productive a lot of times kids will say you know keep your two dollars I want to -- the garbage is -- So we should be really recommend getting a small islands every week just to teach them money managers who just give money.
If you can give -- money but I mean it could be a small amount can just usually it's about a dollar a year per week so it's -- -- six years old is about six hours a week.
On that what you can do is if that's a lot you could just say -- given two dollars a week but you know they can earn a few extra dollars here and thereby doing other things house.
If given a fixed amount every week set up right or or.
What -- -- -- did Ramsey would say that you know the money you get is split three ways one.
The piece goes to charity -- -- -- to savings and then left over you can spend and so maybe that's the way to break at tip -- get six dollars two dollars goes each way exactly.
What was seeing too much is on -- list why.
Well it's the corollary to not saying and I -- you don't wanna go in the other direction and involve them in things that are.
Really mostly difficult for them to handle -- whatever their -- so things like.
You know how much -- divorce is costing our child support or you how much even other parents -- compared to you -- constantly talking about money like.
A look at the car they have -- You know it's so much it's so incredible how much kids pick up -- these little comments -- comments we make I find that -- don't actually get it even at ten.
My son doesn't have a clue as to how much people make in their jobs frame rate -- need to talk about that kinds it would below his mind.
-- -- so I don't we don't they're not ready -- -- when you start going college and they start thinking that careers at that point you can start talking about salaries but.
When they're young expects to start thinking about what they want to do with electric what they're passionate.
We -- could be allowance for the other thing on your list was being your child's only employers -- we should get out work.
Yes I think -- -- a suggestion yeah I mean the thing is it's not you know goes and into the mines near the factories.
But it's it's it's really well.
Seeing having another office -- mom and dad right so they might -- -- he -- -- just babysitting emissions mowing -- -- in our on the corner but they're gonna start seeing it being accountable to someone other than mom and out of Boston that's a really good thing.
To instill -- kids at an early age it's absolutely and then of course handing money over at the wrong time.
Makes perfect sense.
Talk about the -- say all the stuff is on the web -- It's online environments -- commonly offer so we have really create daily emails we also have.
Interactive tools and calculators they can calculate how much -- -- he's gonna costs you thinking about having I'll really fun things like you know like it's a -- money this Christmas.
That's Sanath not a terrible times such comment in Nevada are figuring out what you gonna do it because inevitably some along lots and finish up with some money -- -- what to -- kid.
And it's at that time -- to make Smart decisions exactly and you can teach you about savings and about interest in how their money can growth because of the size of the savings him exactly.
It's definitely really an editor in chief of learn best dot com check out the website.
Don't make mistakes teach your kids about money and as -- and I -- talking -- him break for some.
Unknown reason they don't teach is stuff in school.
And -- and it's ridiculously important kids should understand personal finance and their own they sent to get a website -- -- dot com Maria thank you so much thanks for having.