By: Nicolya Grigsby

 Better understanding of the importance of money management skills for children.  Learn appropriate ways based on age-to develop positive financial skills.

 For the first time ever teenagers are spending as much money on food as they do clothes.  Only 43% of teens have a bank account that they review with their parents  Only 30% of some children/teens are giving some of their money to charity.  Teens and Children are developing spending habits at a younger age.  Over 50% of teens would like to learn more about money managment

 Parent’s who model positive financial habits typically have children who make more sound financial decisions.  Parents should talk to their children about money regularly.  Parent’s can use cash. This helps the child associate cost with items being purchased. Debit/Credit cards can be misleading.  Help to develop and allowance and spending plan for your child.  Talk to your child about the danger of credit cards.

 Allowance: give (someone) a sum of money regularly as an allowance(Award for work).  This should not be given as a behavior incentive.  An allowance helps to teach your child how to manage their money. It also teaches the importance of hard work.  Each family can define what is appropriately differently but the key is to be consistent.  Financial discussions should happen regularly to help your child when receiving income.

 Identify the childs income (allowance or money from other sources )  Identify goals. This can include tithing, saving or a purchase.  Review and Revise the spending plan frequently.

 When your child turns 18 they will be given many opportunities to get credit. Teach them all about credit in advance so that the creditors have a smaller change of convincing them that it is a good idea.  Most children do not understand the term interest. Help to define this and explain the trouble with interest.  Give concrete examples of how interest can affect you.

 Help your child to identify goals that they are able to reach.  Allow the child to control a portion of their money.  If they accidentally overspend do not give them money back to make up the difference.  Continue to talk about money and allow each experience to be a learning opportunity.  Make money fun, so that children can start to develop a positive attitude about money.

 Financial Peace Jr. By: Dave Ramsey *This book helps to teach your child appropriate ways to handle finances. Smart Money Smart Kids By: Dave Ramsey *Teach parents how to raise money-smart kids in a debt-filled world.