Write these commandments that I’ve given you today on your hearts. Get them inside of you and then get them inside your children. Talk about them wherever you are, sitting at home or walking in the street, talk about them from the time you get up in the morning to when you fall into bed at night.
DEUTERONOMY 6: 6-8

By Lauren Barack -- School Library Journal

Most parents believe that talking to their children about financial troubles at home only add to the stress in their family—not reduce it, according to the a new Marist Poll.

The student-run polling group interviewed 1,128 Americans and found that 68 percent of parents they spoke with believe talking to their children about making ends meet could make home life more difficult. Just 27 percent believe that conversation can help to reduce stress.

The Marist Poll, run through the Marist College Institute for Public Opinion in Poughkeepsie, NY, ran the survey to find out if Americans believe children need the current economic environment explained—especially as media stories about the recession play out around them.
As educators know, students can be incredibly intuitive about messages around them and without some guidance can often misinterpret their meaning.

Read more at schoollibraryjournal.com

By Caryl Horan

Reprinted with the permission of The Bridges Initiative Inc. who originally published this article in the Life Skills Information area of their Career Explorer web site.

WHAT IS IT with parents? They buy us a pack of gum here or a choco late bar there, they pay for the gotta have them $100 new jeans and a trip up the ski hill and then when we turn 18, about the same time most of us leave home, they slam the wallet shut and tell us it's time for us to learn how to manage our own money. Money management starts with money, your own money, and even a preschooler can start to learn that a penny saved is a penny earned.

Sometime early in life, usually around the age of three, a kid discovers money. They figure out they need the shiny stuff in mom's purse if they are to get their paws on that special toy they just saw advertised during Sesame Street. They know that money has rewards, it has power but what they don't know is how much value it has. Most kids figure that if they beg long enough, no matter what the cost, sooner or later mom and dad will come through with the goods.

That's where the problem is. Most kids are never taught the skill of money management until it's too late. Sometimes they get a few bucks for a birthday or Christmas gift but most kids don't get a regular salary from their folks. First hand experience is vital to learning smart money management skills and without the money, there is no experience.

This is how an allowance fits in. Financial Advisor David McCurrach who has started up a Web page called Kids' Money says a survey of parents shows that about 60% give their kids an allowance. "It's shocking because the only way kids learn about money management is by their own successes and failures, and you have to have money to do this."

Linda Barbanel, author of “Piggy Bank to Credit Card” believes that as soon as your kids are old enough to ask for something in the grocery store it's time to start up with an allowance. "Whenever a child says 'gimme' you know he is ready to be taught to save."

Estimate how much you are already spending fulfilling requests to buy this or that each week and then set that amount as their allowance advises McCurrach. One formula is to give the child a dollar a week for each year of age however a four year old could start quite nicely with two dollars a week.

It is critical that you sit down with them first and tell them exactly what they are expected to pay for from their allowance. You can't tell them what to buy but you can say their allowance is to be used in three areas:

• • Sharing - Church or charitable donations, birthday presents for family or friends
• • Spending - Toys, candy, specialty clothing items and entertainment
• • Saving - 10-20% of allowance needs to be put away to save for something they want that costs more than the weekly allowance

John Messervey from the National Family Business Council suggests using a journal to keep track of exactly where the allowance is going. "Once a week write in dates and amounts and show the child how and where they spent their money, how much is left and how much they have in savings. Messervey points to several banks who offer "kids accounts" where as little as a dollar can be deposited without monthly fees and the child receives a bank book where they can keep account of their savings.

Many parents are prone to tie an allowance to weekly chores, but it is a mistake. "We tried that" says McCurrach "it was a disaster. If the child doesn't need the money they get into trade-offs like they won't clean the bathroom because it is not worth the two bucks." Besides, it is impossible to learn how to manage money without a regular income and if one week there is no money it blows the consistency.

Paying for "extra chores" is quite all right especially if the child is after a high-ticket item. Just make sure that the chores are above what is usually expected of them and that the money earned goes directly into saving for that particular purchase. The lesson is "I can work harder for the special things I want."

Remember, the reason you are giving your kid an allowance is to teach them the value of money and to set the foundations which will carry them through their adult years. Sure, you could just give them the hard cash if you can afford it, but having saved for something themselves they have learned patience, discipline and hopefully money smarts that will last them a lifetime.

One of the most frustrating questions a parent has to put up with is: “Why can’t you buy me this…?” I once answered naively that we couldn’t afford the toy, to which my bright child said: “Just go to the ATM and get money.”

Adults have trouble managing money and understanding Economics 101, so imagine a 9-year old trying to master the subject of family finances. Of course we, the parents, make things more difficult by being evasive or lying shamelessly.

Be Frank about Your Money
The rivalry among children and teens makes things more complicated due to the sometimes great disparity in incomes. If Johnny just got an expensive cell phone, what do you say to your daughter when she asks for one too? If you keep saying that you can’t afford it and that same week you buy yourself an expensive leather coat, your child will know that you lied. It pays to be frank and honest with the kids whenever you refuse to buy them something. “I decided not to buy you a new cell phone because the old one works very well” makes perfect sense even though your daughter will be disappointed. At least, she knows you did not lie.

Read more at The Smarter Wallet

By 02SmithA, eHow Community Member

Things You'll Need

1. Piggy Bank
2. Allowance
3. Solid teaching skills
4. Practice what you preach

Instructions

Step 1
Even pennies can be very important. The first thing you need to do is start out with the most basic of all money lessons for a children, the piggy bank. In the grand scheme of things as a mature adult you realize that the piggy bank likely won't have a lot of money in it, but it will be very important to teaching children money management. Encourage your child to save money and put it into their piggy bank. The goal is to have your children be excited to put that money in the piggy bank.

Step 2
As your children start to get a little bit older, give them a small allowance to do special chores around the house. It is important that you not give them a lot of money, but a small amount helps teach them of the rewards of doing good work. While teaching money management skills you also teach the benefits of working hard.

Step 3
Teach your child that they can't always get what they want. It's one of those lessons that they won't appreciate at the time, but in the long run it is definitely good for them. Sometimes the answer must be a firm no, and they will have to understand that.

Read more at ehow.com

Children’s books are primarily for entertainment and enjoyment.  They can also be an important teaching tool for a parent and can lend themselves to good family discussions and the support of critical thinking.  Occasionally, while reading to your child, look beyond just the pure enjoyment of the story to the possible lesson that could be learned.  Questions that can be used for any story include:

• - If you were in this story, who would you be?
• - What is your favorite part of this story?
• - If you could change the story, what would you change?
• - What might a different ending be?
• - What do you think we should remember from this story?

One caution: do not over-engage the child into always having to think of the meaning.  Some stories are to be read just for the joy of reading. If you are using it for discussion, only ask a few questions---about as many as the child is old.

Our Heartfelt September issue talks about money. Some books from our September reading list lend themselves to an interesting discussion about money:

• Alexander, Who Used to Be Rich Last Sunday by Judith Viorst is not only a delightful read, but there are some lessons to be learned from Alexander.  He suffers from the same problem many people have, which is not being able to hold onto their money.  We hope Alexander learns from his poor decisions.  Parents can help their children see the folly of some of Alexander’s decisions.  There could be an interesting discussion about taking bets or buying things we do not need.  Here are some questions to use in your discussion.

1. When you have money, do you feel like you need to spend it?
2. Do you think Alexander has a money plan?
3. Alexander wants a walkie-talkie.  What would you like to buy with your money?  Could you make a plan to help you achieve your goal?
4. Which character is most like you in this story?
5. What advice would you give to Alexander?

Hopefully, your discussion will lead to the possibility of making a money plan.  Help your children see the value of the three S’s: Spend, Save, and Share--helping them decide how much to spend, how much to save, and how much to share.  Talk about the satisfaction in spending our money wisely, the importance of saving some of that money, and the joy in sharing what we have with others.

• Pigs Will Be Pigs by Amy Axelrod is a silly story about pigs searching for enough money to go out to eat.  Lessons can be learned even from silly stories.  Perhaps the most important lesson in this story is not how much money they were able to find, but a discussion about what will happen the next day.  The pigs certainly were not planning ahead.  Questions for discussion:

1. Where do you like to eat?
2. How much money could you find in your room?
3. Where would you look to find money?
4. Where or what do you think the pigs will eat tomorrow?
5. Why was their home not so sweet when they got home?

• The Berenstain Bears ’ Trouble with Money by Stan & Jan Berenstain is especially good for early readers to learn the value of money: “to understand that there is more to learn about money than how to spend it”. 

1. What is an allowance?
2. Is it possible to care too much about money?
3. Can you think of some good ways to earn money?
4. Why do you think Mommas and Pappas worry about money?
5. Is there any part of this story you would change?
   
   

Alexander Who Used to be Rich Last Sunday by Judith Viorst

Allowance Book by Amy Nathan

Can I Have Some Money?: Max Gets It! by Candi Sparks

Kids and Money by Jayne Pearl

Money Sense for Kids by Hollis Page Harman

Pigs Will Be Pigs: Fun With Math and Money by Amy Axelrod

The Berenstain Bears’ Trouble With Money by Stan & Jan Berenstain

The Case of the Shrunken Allowance by Joanne Rocklin

World of Money Allowance Kit by Michael Searls

Kids' Allowances: How Much, How Often, & How Come: A Guide for Parents by David McCurrach

Raising Financially Fit Kids by Joline Godfrey

Raising Money Smart Kids: What They Need to Know by Janet Bodnar

www.kidsfinance.com

www.moneyinstructor.com/kids.asp