Wednesday, October 19, 2011

Teaching Your Kids About Money: Tweens

Ahh, the tween years... Trying to find your place, still wanting to play like a kid sometimes, but hormonal changes can make you act like a teenager other times.  Some gawky, some just finally growing into their faces. Here are some thoughts about children this age dealings with money:
  • Set savings goals:  As you child ages a little bit, he/she are more able to think about saving for a special item or experience.  For example, an eighth grade trip, a trip to Cedar Point or an iPod.  Whatever the goal is, help your child to set up a savings plan that will enable them to pay for necessities while they are saving for their long term goal.
  • Giving to Charity:  Even if it is only a little money, this is a great time to start learning to give to worthy causes.  Let your youngster research and pick the charity. 
  • Kids this age might be starting to shop by themselves (with friends, not you).  They are also extremely brand conscience.  Experts suggest telling your tween to wait a few days before buying something.  Another approach is to have him/her make a list of pros and cons about the coveted item.  If he/she still wants it, help them go online to comparison shop.  Kids, like adults, love getting a deal, but often they do not have the patience or know-how. 
  • Plastic, the inevitability:  Let's face it, the probability of this generation being card carriers is high.  Why not teach them how to use it wisely while they are still solidly under your roof.  Experts say that a good first step is an ATM card tied to their savings account.  Your child can draw from funds saved himself (Christmas, birthday, allowance, etc.)   Plus, you can track spending online and nudge them back in the right direction, if need be.  Experts also suggest opting out of overdraft protection fees.  If they go over, it is important they learn what can happen.  Make them work to earn the money for the fees.
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