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PFI Weekly Updates - March 3 (2009) — Passive Family Income
March 3, 2009 at 5:59 am
Teaching Kids about Investing: A New Princess Doll Or College?
March 9, 2009 at 4:11 am

{ 5 comments… read them below or add one }

1 Miranda March 3, 2009 at 7:15 am

We have been teaching our son about saving money. Sometimes it’s difficult, since he doesn’t really get the whole “future” thing as a 6 year old. But we showed him how much it would cost for him to buy a toy he really wants, and compared it to how much it would cost to buy a toy he doesn’t particularly care for, and showed him how much he had, and how much longer it would take to buy the toy he really wanted. We are pleased that he decided it was worth it to save up for a couple of weeks (we will mark it on the calendar in his room so he can see progress) to get what he really wants.

2 Maria @ Residual Income Web March 3, 2009 at 7:19 am

Our kids have been interested in our debt-freedom process all along. They proudly announce that they are “already debt free” and ask if there are any more credit card they can have to cut up.

3 Zack aka Coupon Dad March 3, 2009 at 10:19 am

My opinion is you can’t start early enough to teach your kids about finances. Unfortunately I say that now but haven’t always been the best at doing that.

I know growing up that this was not a subject that was ever touched on in school (other than basic checkbooks and how to balance). However I have seen a very recent change on this and have noticed that Middle school and up seem to be offering classes about personal finance. I think this is great as it will help enforce the lesson children should be getting at home from their parents on the subject, or if children aren’t getting any direction from home at least they will not go out in the world with absolutely no financial knowledge.

Another big component I believe of teaching your children about be financially responsible is to “practice what you preach” and to talk openly with your family about your finances. It is amazing what they pick up on and how they will start to help you reach some of your financial goals.

One quick proud father moment and I’ll be quiet :)

About 4 years ago my wife and I got to a point that we could start an allowance program. We offered an allowance for certain chores above the basic ones they do as contributing members of the family. When we started this program (at the time with just my eldest daughter) I asked how she would like to receive her allowance each week. Her comment “please just deposit it into my savings account so it can earn interest and I won’t spend it” I almost cried…and to this day she has left it alone.

Coupon Dad

4 Scott March 3, 2009 at 6:18 pm

@ Maria

Great to hear your kids are getting excited about cutting up credit cards. I’ve never heard a child use the term “debt free” before. You must have some savvy financial planners in your house.

5 Scott March 3, 2009 at 6:21 pm

@ Zack

What a great story. I can only hope that my kids will want to save money like yours and get excited about earning interest. I did as a kid and hope to continue the fascination with compound interest.

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