The benefits of teaching your children about money can be both short and long term. Let your children help you determine how to teach them. Use their questions to develop lessons.
Explain to children that money is earned. Consider paying them for helping with certain chores.
Use a piggy bank to help teach about savings and interest. Set a savings goal to encourage your children to save some of their allowance. Calculate how much is saved each month and chip in a certain percentage as interest.
Take your children to the bank to open a savings account requiring a lower minimum deposit.
If you extend credit, issue an IOU, set a repayment schedule, and charge interest.
Review compounding, or the ability of interest to build upon itself.
Once your children begin earning their own money through part-time jobs, introduce them to investments such as stocks and mutual funds
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I think one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity explains well not only for children but for all of us also ...
He bought his first share at age 11 and he now regrets that he started too late!
Things were very cheap that time.
Encourage your children to invest
He bought a small farm at age 14 with savings from delivering newspapers.
One could have bought many things with little savings