Did you know that many children think there is a "Money Store"
where we get more money if we run out? That is what my 4 year
old told me today and I am finding that many children his age also
have that belief regardless of the money wise environment that
their parents think they are raising them in.

There are many steps that parents can take in teaching their
child the basic concepts involved in saving and spending and the
fiscal responsibility that comes with it.

ALLOWANCE & BUDGET.
If your child is old enough to say "Buy me this" and perform
small household tasks then they are old enough to have an
allowance. Many experts suggest giving them one dollar
equivalent to their age. However if you have a large family
and a low income household that method could break your
budget pretty fast! The important thing is that you spend time
teaching them about long-term savings. Let them open a
savings account and give children the option of donating 10%
or less to charity. In essence...help them set up a budget!

DELAYED GRATIFICATION
It is a natural behavior for young children to beg for items they
see in the store and dealing with the "Gimmie" attitude is part
of being a parent. But how a parent reacts to a child demands
can have very long lasting effects on how your child will look at
money. If parents give-in to their child begging for items then it
teaches them to beg. A very simple concept but everyday you
can find parents and grandparents at the grocery store who
should get failing grades in this area. Isn't a constant pattern
of instant gratification what has lead America into their obsession
with credit cards?

Start teaching principals of delayed gratification early on by
helping your child make a wish list and perhaps offering to
match funds when they reach a certain amount. Adriane Berg
co-authored the book "The Totally Awesome Money Book
For Kids" and suggested that you can even lend your older
child money to reach their goals. She suggests to "charge a
small interest to illustrate the downside of borrowing".

YOUR SPENDING ENVIRONMENT
The facts are that our children are influenced by their environment
and that includes how they look at money. If children see their
parents checking the price tag on items prior to purchase or
putting something back because of inflated prices it will have a
positive financial effect on their attitudes. Comparison shopping
has been taught. Each time parents pull out their credit card, take
advantage of the teaching moment to explain how interest, billing
and spending limits work. At the ATM make sure young children
know that the bank was taking care of the money you got for
your allowance.

ACTIVITIES FOR SMALL CHILDREN
1) As a young child my father and mother organized a family
activity night I will always remember. He cashed his paycheck
in small bills and laid it out on the living room floor. We counted
out the money to pay each bill, and put the money into envelopes
for each budgeted category.

2) Give each child $2 and assign them a portion of dinner.
Assign a drink, main course, salad, dessert, etc. Then go to
the store. Buy, prepare and serve dinner as a family.

Author Rachel Webb designs Large 100% Magnetic
Fridge Calendars Guaranteed not to slide off when the
kids slam the fridge door! visit: http://www.Note-Ables.com
or e-mail Rachel@... for a $2 off coupon.