Personal Finance. Whats The Best Way To Educate Kids On Money And Finances?

Personal Finance : Whats The Best Way To Educate Kids On Money And Finances

I want to have responsible kids. How do I build financial responsibility in them? ~~~ nan_seat ~~~

Best Answer To Personal Finance Question

Heres something were trying with our 15 year old to help him understand credit cards and money management. He has a Visa Buxx card, which is a prepaid, reloadable card that works like a credit card, but has a balance only you (the parent) can control. The teen has access to account information on their balance and transactions. They use it just like a credit card anywhere Visa is accepted. They MUST be aware of whats available in their account or their purchase will be declined. You fund the card from a checking account or checking card. The issuing bank charges you a setup fee and a small fee ($2)each time you add to the card. We have a checking account with the bank that issues it and they actually waive that fee. You can put as little or as much (up to $2000) as you want. Minimum age to use a card is 13. And theres no minimum balance or minimum time limit on it. For us, its a real simple way to give him an allowance AND responsibility for it. For him, its a way to spend AND budget his money, easily helping him save it for what he wants without tapping his real savings account. If your kids are too young, or you think its too soon, Im sure the program will be around for a while. But if you think its something worth trying, heres a link from Visa to explain the program.

All Answer To Personal Finance Questions

Answer 1

Heres something were trying with our 15 year old to help him understand credit cards and money management. He has a Visa Buxx card, which is a prepaid, reloadable card that works like a credit card, but has a balance only you (the parent) can control. The teen has access to account information on their balance and transactions. They use it just like a credit card anywhere Visa is accepted. They MUST be aware of whats available in their account or their purchase will be declined. You fund the card from a checking account or checking card. The issuing bank charges you a setup fee and a small fee ($2)each time you add to the card. We have a checking account with the bank that issues it and they actually waive that fee. You can put as little or as much (up to $2000) as you want. Minimum age to use a card is 13. And theres no minimum balance or minimum time limit on it. For us, its a real simple way to give him an allowance AND responsibility for it. For him, its a way to spend AND budget his money, easily helping him save it for what he wants without tapping his real savings account. If your kids are too young, or you think its too soon, Im sure the program will be around for a while. But if you think its something worth trying, heres a link from Visa to explain the program.

Answer 2

Start when they are small. I started my kids when they were about 5 or 6. We practiced counting money with a toy register and play money. When they got older they got an allowance. Half went into the bank and they could spend the other half on what ever they wanted. They had to chose something they had the money for it. I never pitched in. they had to give the money to the cashier then count the change with her. As they got older they were responsible to keep track of their savings I even had them start helping me balancing my check book. Now we use Quicken which is wonderful because now I can teach them how to budget. If you make it fun and interesting for your children they will be much more willing to do this with you. It is so important to teach them about money and responsibilities when they are young! Hope that was helpful