| Mommy I want that new video game! Dad I want the | | | | of a child's allowance to a saving account, or making |
| new I-Phone! Grandma I want the new Mac Book! | | | | gifts of cash directly to an account in their name. |
| Most parents have heard some variation of the above | | | | Parents can discuss the account statements with the |
| statements. Parents usually are the primary financial | | | | children and introduce the concept " paying yourself |
| educators for their children. Time after time, I have | | | | first". |
| seen young people receive sizable allowances or | | | | 3) Develop a Sense of Financial Empowerment - It is |
| inheritances, without a base of knowledge in financial | | | | important that parents develop responsible spending |
| planning. Consider the following five points to assist the | | | | habits by well thought-out choices. In order to guide |
| children in your life to have a responsible attitude about | | | | and direct rather than dictate the savings and spending. |
| money. | | | | Take children on window-shopping trips to compare |
| 1) Be a Role Model - The way parents spend money | | | | prices and products and adopt the mind set that every |
| and the way children view money has a significant | | | | trip to a store is an exercise leading to a potential |
| correlation. Consider discussing the family's financial | | | | purchase. For example, consider limiting impulse buying |
| goals and plans with the children. How much you share | | | | by implementing a rule that prices and products are |
| is to your discretion, but include the younger generation | | | | compared at a minimum of three locations. |
| in at least a portion of the monthly management. How | | | | 4) Give Unto Others - Involve children in the financial |
| parents deal with money issues, from the monthly bills | | | | decisions regarding philanthropy. By helping children |
| to planning family vacations can be important in | | | | contribute time or money to a charitable cause, it can |
| teaching the children money management and the | | | | teach them that money is important in ways others |
| value of money. | | | | than personal consumption. |
| 2) Encourage Savings and Investments - To | | | | Reference: Matthew P. Bartolomei, Financial Advisor |
| encourage children to save money is one of the | | | | NOTE: you can freely redistribute this resource, |
| simplest ways to encourage a responsible attitude | | | | electronically or in print, provided you leave the authors |
| about money. This could include designating a portion | | | | contact information below intact. |