During Financial Literacy Month and all year long we need to boost our children’s education (and our own!) on being financially responsible. Parents are rightly concerned about their family’s future, especially during downturns in the economy. But there is hope!

As a family money skills expert, I teach a simple system of daily life skills that lead to financial literacy and competency. I say it’s never too early to engage youngsters in handling money wisely. And it’s never too late in life for adults to break bad money habits and become good financial role models for younger generations.

Starting a Financial Literacy Movement

I share with adults — parents, grandparents, foster parents, educators, caregivers, coaches and others who influence children — a roadmap for teaching kids to have respect for money, and to sensibly spend, save, invest and give throughout life. Now’s the best time to start, as adults are worried about these tough economic times. YOU and YOUR KIDS will want to become part of my grassroots Financial Literacy Movement! This will be highlighted further during International Teach Your Children Money Skills Month, scheduled for October 2013.

Money Milestones

Surprise! — even very young children are already watching as you handle, use and exchange money. That means toddlers and pre-schoolers are already learning about coins and cash, and even credit cards. Your young kids observe as you pay for groceries at the supermarket. They receive birthday cards with cash and checks stuffed inside, from Grandma. They know that you place a tip for waitresses at a restaurant and put money in the collection basket or donate to the Girl Scouts. They know that you get the chocolate cone after you pay the ice cream man. These are among the earliest money milestones that help your children understand where money comes from, and what money can (and cannot) do.

Children aged 2-thru-4 should therefore be learning to count coins, and to understand the worth and appearance of different coinage. Talk to your young children about having their needs vs. wants met, showing gratitude (thank Grandma for that monetary birthday gift!) and how to exchange money, protect it and share it. Youngsters must learn that money has a number of important uses.

When aged 5-thru-7, and as they start grade school, children will want to learn other basics such as making change and compiling a wish list for their “wants.” Mini-allowances can begin for this age group. You can also help your child start a bank account. Self-control now becomes a good indicator of financial success, long-term.

By the time children are in the 8-thru-12 age group, they will be learning not only more complicated math (from percentages to fractions and beyond) — but also life skills that help them navigate toward adulthood and handling finances. These pre-teens should be getting a grasp on several money-related concepts including: wise shopping and what things tend to cost (is it really a bargain?) … plus developing a saving plan and a spending plan.

In the teen years, when getting that initial taste of true work experience, your kids will want to know:

* Why a healthy credit score is so important.

* Facts about interest rates, and using credit cards prudently.

* The difference between good debt and bad debt.

* All about planning and making major expenditures, including dorm furniture and electronics and eventually that first car.

G.I.S.S

Parents and other adults in a child’s life are poised to be financial mentors at every stage. When building a money-wise foundation for your kids, start using the G.I.S.S. Method of Money Management to divide all income into categories. Just as the popular “K.I.S.S.” (keep it simple) method works, so does my GIVE, INVEST, SPEND, SAVE advice. I encourage you to have money conversations with your young children. Help them become financially literate and financially responsible by introducing the concepts of Giving, Investing, Saving and Spending — G.I.S.S. Help youngsters understand that they will use this basic money formula to build wealth throughout their lives.

Be sure to make learning about and using money FUN, as well as consistent and relevant. Remember that any family interaction can be a teaching opportunity, whether you’re paying bills, shopping at the mall, discussing holiday gifts, or making a donation to a worthy cause like the local animal shelter or a world organization. Encourage your children to:

* Be enterprising. Is there a lemonade stand in their future? A paper route? Or opportunities to run errands, baby-sit or make their own product to sell?

* Set aside a portion of their earnings or allowance so they can grow their money for future purchases and to help others.

* Experience the pride that comes with setting and achieving money goals.

Whether your children are pre-school age, going to college, or somewhere in between… you can engage them in learning and living good money basics. Financial topics are NOT meant to be hidden from youth. The key money skills children need to learn are straightforward, not complex – but they have to be taught on an ongoing basis during the various stages of youth. So make it a good parenting goal to talk to your kids about basic financial concepts as a part of daily life.

The Rewards

Just as there is a sequence to learning and practicing sports or any other skill, there is similarly a sequence to learning about and using money wisely. The reward for individuals and entire families can be lifelong prosperity. The reward for our society and our way of life, can be economic strength and stability everywhere!

Sought-after speaker, media guest and family money skills expert Nancy Phillips, creator of the Zela Wela Kids™ book series, has launched a new audio program for parents: How to Teach Your Children the Most Critical Financial Life Skills; 250-864-9419; nancy@dollarsmartkids.com; http://www.zelawelakids.com/

Speaker, media guest and family money skills expert Nancy Phillips, creator of the Zela Wela Kids™ book series, has launched a new audio program for parents: How to Teach Your Children the Most Critical Financial Life Skills; 250-864-9419; nancy@dollarsmartkids.com; http://www.zelawelakids.com/

Author Bio: Sought-after speaker, media guest and family money skills expert Nancy Phillips, creator of the Zela Wela Kids™ book series, has launched a new audio program for parents: How to Teach Your Children the Most Critical Financial Life Skills; 250-864-9419; nancy@dollarsmartkids.com; http://www.zelawelakids.com/

Category: Parenting
Keywords: Kids and Money, Financial Education, Financial Literacy, Raising Financially Responsible Kids