1. Teaching Children About Money & Budgeting Casey Clements Zhen Li Kathleen Skarda

2. Importance of Teaching Children Money & Budgeting Everyone needs to understand about money Literally, America is a nation of consumers with savings and debt out of balance Cannot afford to raise another generation of spenders Teens lack money know-how Help children managing money and dealing with risk and return Reduce stress and increase satisfaction with life Set kids well on their path to financial freedom Children can enjoy life-long benefits from good money habits

3. Kids Spent $57 Billion in 1992 The average child is exposed to more than 500 television advertisements per week. Results in distorted values and a free spending attitude. Junk food, designer labels, and fad items that were "to die for." The good news is that children tend to mimic their parents' thrift habits.

4. Model the Behavior The primary way young children learn is by following parents examples Involve children with family budgeting –Review your financial plans with them You can’t spend what you don’t have –“Cookie jar principle” Save money –Rule of 72 (delayed gratification)

5. Help Them Budget Earmarked for several budgeting categories –spending –short-term savings –long-term savings –charity

6. Actual Experience My name is Katelynn Penny, nickel, dime, quarter, dollar I love money! (Expressions of excitement)

7. Learn for Themselves Advice is helpful but the true teacher is the pain of an unwise purchase.

8. Allowances: There's a strong argument that an allowance is the best way to teach children to handle financial responsibility. There's an equally convincing case that nothing could be further from the truth.

9. Give an allowance Can help teach a child to save, budget and spend responsibly A child can make mistakes and learn from them before the stakes are high. Teach negotiation skills Can be used as a tool for motivation and reward

10. When and How Much? At least old enough to count and understand currency basics – 5 or 6 years Age appropriate How often? Chores based Grades based Family membership based

11. Performance based allowance: The problems "For that amount of money, I'm not going to do that work." Grades do not always reflect effort

12. Arguments Against Allowance: Children will not automatically learn good saving and spending patterns by simply receiving an allowance.

13. Don’t Give an Allowance Giving money hinders financial independence and resourcefulness Children should help because they are members of the family, not because they get paid Can establish parents as the primary source of financial funds

14. When does the allowance stop?  High School Graduation?  18 years?  Leave home?  College Graduation?  Marriage?  Never?

15. Alternative methods Encourage child entrepreneurship Children learn by example Involve children in family budgeting and financial decision making where appropriate.