Teaching Kids About Money

If there is one thing I am grateful for, it was learning what it's like to be "poor." There was a time in life when my father was starting up a business, and we had very little money. Looking back, I didn't realize it, because we didn't want for anything. We had clothes, food, a house, and lots of toys. There were loads of presents under the Christmas tree every year. We never felt "poor." My parents both grew up learning how to work hard for what they needed and wanted. My mother grew up in East Germany, where they often went without. She learned not to be wasteful, and luckily handed that down to me. All those presents under the tree...those came from garage sales. And on Christmas morning, do you think it mattered to us? Nope!

Today things are a little different. Parents have more bills these days, like cell phones and internet. The cost of automobiles has gone up faster than incomes, so we almost always have a car payment as well. There are also new "toys" out there like computers, video games, iPods, and other electronic devices. So in addition to the cost of living increase, there are more expenses that kids might incur these days. I say "might" because these things really aren't necessary. Kids are only entitled to food, shelter, and clothing. The rest is privilege. But how do we get kids to understand this?

When I was a kid, the thing we all wanted was designer clothes. I wanted so badly to have the Gloria Vanderbilt jeans that all my friends wore. My mom made a deal with us. She would provide money for a pair of jeans. If we wanted Gloria Vanderbilt jeans, we would have to come up with the rest of the money. So we did. When it came time to buy a car, whatever I had to contribute, my parents would match it. These are the kinds of things that teach kids about working for something. Too often kids get out in the real world and have no clue. They just want to keep getting things handed to them and then realize there is nobody there to hand it to them, unless the parents are still forking it over (which many do!)

Famzoo.com

Now there is a program that teaches kids about financial responsibility before they get out in the real world. It makes it easier for parents to maintain a system which is set up online. Both parents and child can log in and see how much money has been earned by the child, and the child is allowed to spend, save, or give from their account. It is similar to a bank account, but the money is not moved around, it's all virtual. Of course, the parent(s) must have the money available when the child is ready to spend it. So if they save, save, save, then the parent must also. This system gets rid of kids asking for EVERYthing at the store. They can only have it if they have the money to spend on it. Oddly enough, Famzoo helps parents SAVE money because it has a built in system for keeping expenses lower by keeping kids from nickel and diming their parents constantly.

With Famzoo, you will:

• Create virtual accounts to track spending, saving, and giving
• Schedule automatic allowances to limit spending (optional)
• Post chore checklists to pay for performance (optional)
• Make savings goals to track progress and set expectations
• Teach personal accountability and help your kids practice living within their means
• Show the value of patient saving and the magic of compound interest
• Teach the importance of charitable giving and how to evaluate charitable opportunities
• Start simple for youngsters age 4 and up and add more sophistication through the “tween” and teen years
• Add separate accounts and budgets for classic teen items like clothing
• Make loans to your children to encourage the proper long-term care and appreciation for “big ticket” items like bikes, computers, cell phones, etc.

Famzoo allows you to try them out for two months, ABSOLUTELY FREE! If you want to learn more about how it works, you can take a tour on their website. Just click the banner below to take you there. Hopefully Famzoo will help your children grow into responsible adults with excellent financial health!