Presentation on theme: "Teaching Kids to Handle Money By: Zoe Mount, MFT Unitarian Universalist Church of Palo Alto December 7 th, 2008."— Presentation transcript:
Teaching Kids to Handle Money By: Zoe Mount, MFT Unitarian Universalist Church of Palo Alto December 7 th, 2008
Introduction A little about me What is an MFT? What kind of people do I see? Why this topic now?
Overview This seminar will cover teaching kids to – Handle money – Budget – Stay out of debt – Save
Teach What at What Age? What can a preschooler understand? What can a school child understand? What can a pre-teen understand? What can a teen understand?
A Quick Note It is hard to teach what you dont model– take a good look in your (financial) mirror. Do you pay your bills on time? Do you keep your credit card debt down? Would you worry if your children handled money as you do?
Teaching Kids to Handle Money How to model paying bills when its all automatic? Bring automation to your childs attention. Make a production of paying any bills you still pay with a check/envelope.
Teaching Kids to Handle Money Making finances fun Playing money games (Monopoly, Life, CashFlow) Games with real bills: which number is biggest? Which is lowest? Which shows up every month?
Life Is The Best Teacher Let Kids Have Their Own Money This means no strings attached. Letting kids handle their own money teaches them lessons early.
Let Kids Have Their Own Money This also means access to their money. Cash on hand or debit card
Benefits of an Allowance Gives kids their own money. Sets up assumption of daily/weekly chores. Gets chores off your to-do list!
Ways to Encourage Saving Help them invest in stocks/bonds Dont make money disappear Offer interest on savings held with you
How to Foster Responsibility Expect it. Praise efforts, improvements. No loans/forwarding allowance. Make them pay for their own luxuries.
How to Foster Responsibility Make them pay for their own luxuries, such as: Phones iPods Entertainment Transportation Food
Avoid Forced Saving No one tells adults how much to save, how charitable to be. $10 allowance -$1 savings - $1 charity = $8 allowance and we all know it.
A Different Approach Instead, let them see you save, donate to charity. Tell them why you do it.