Finance Roll

It's never too soon to teach your children about the value of and responsibility toward money. Here are some excellent activities to teach your children about finances, from your toddler who seems to want everything to your trendy teenager who won't do anything unless it's in style.

Just as bad habits are very hard to break, good habits that you teach children now will last a lifetime. If you have toddlers, now is the best time for Moms to teach them how to manage money. If you have older children don't worry...it's not too late. Instilling positive money values now will create a wonderful foundation for your little future investors.

Follow the Leader

It's a good idea to let your children accompany you to the bank and stores from the time they are infants so they can begin to understand the concept of money exchange. Explain to your toddlers, young children and teens exactly what you are doing and how much it costs. Allow them to see the exchange of money, checks, and credit cards between you and the merchants. Be careful to never make your children feel guilty about how much the bills cost, because that can cause damage to their self-esteem and self-worth. Try to explain each step from where you get the money, where you store it, and how you spend it so they'll know that it's a whole revolving process. Money management matters. Teach your children early so they can be wise about their finances.

Here Piggy, Piggy

At any given point during the day, you might see a new mother desperately prying coins from her 1-year-old's mouth. What this Mom doesn't realize is that maybe her child was eating the money because he had absolutely no idea what to do with it! We assume toddlers are just too young to understand money, but that's not the case. Children love animals, so why not give your toddler a piggy of his own? And, when your toddler picks up loose change off of the floor, he will instead come straight to Mommy so he can have the treat of putting it in his bank. Once he breaks the stage of putting coins into his mouth, encourage your child to independently 'feed' his Piggy Bank every day so the piggy can grow and be healthy and strong. When the bank fills up, reward your smart toddler's savings by taking it to the bank for dollar bills. Let your child buy a special treat that he's been looking forward to with his own money. There are even toys that emulate this process with pigs that sing when kids drop plastic coins into their backs for Moms that don't want their children to handle real money yet.

Treasure Hunt Time

This is a sure way to get children excited to learn about money matters. Save yourself time and stop breaking your back by constantly picking up coins from the floor, in the laundry room, beneath the sofa cushions, and everywhere else money disappears into. Instead of wearing yourself out, when the kids begin to look bored shout out, 'IT'S TREASURE HUNT TIME!!' If you feel up to it and have time, you can even come equipped with a bunch of scarves so they can dress up and pretend to be Pirates. Let your children know the safety rules of the Treasure Hunt (like, no crawling into the washing machine). Tell them they will be able to keep any money they find to save up for something special.

One Mom had a blast doing this with her 6- and 8-year-olds, and while they were busy, she had time to complete some of her own work online. However, when her daughter's teacher called home the next day concerned that she had brought a $100 bill to school, Mom had to let the kids know that 'finding change' did not include going through Daddy's pants pockets or Mommy's purse! So, to avoid any confusion, set those rules clearly beforehand.

Now & Later

Now that your child has money, she will come up with great ways to spend it faster than she's saving it. Let your child know that while it's fun to spend, it can be smarter to save. One great way to teach your children about saving is by creating two containers, one for spending 'Now' and a separate savings container for 'Later'. Each time your child collects money, earns money, or gets an allowance, encourage her to put money into each of the two jars - some for spending Now and some to save for Later. Once she accumulates enough in the Later jar, she'll be able to purchase a larger, more expensive item she's been wishing for. Assist your child in keeping a record of how much she has saved toward her goal to keep her motivated and help her stay on track. Because children need limits set for them, it may be a good idea to keep their Later savings 'safely' placed in an unattainable spot so they won't be tempted to spend it too soon. Allow them to keep their Now container in their room for accessibility.

For The More Mature Crowd

Your teenager probably wants it all, and it seems like they don't care whether it breaks the Mom&Dad bank to get it. It's not that they're necessarily greedy and irresponsible, there's a lot of peer pressure taking place not only at school, but also from turning on the television. Nowadays, if you don't have the trendiest clothes or latest gadget you are simply not cool. There is a solution for Moms to help their teenagers become wiser about the way they use money while still remaining popular.

A great way to teach your teens about money is by using the good ol' Dow Jones. When their next birthdays roll around, give the gift of allowing them to choose a stock to invest their own money in. Explain to them how the stock market works, what affects the economy indirectly and directly, and what that ticker on CNN means. Teach your children so they will understand the pros and cons of low risk vs. high risk investments. Help them make a sensible stock selection. They will feel invested and proud of their stock as the value rises and disappointed when it falls. When the newspaper arrives in the morning, you'll be shocked at how your teens scramble for the Business section to check on their stock. Don't be shocked if you hear your children making long-term plans from the money their stock will make. Their knowledge about the value of investing will spill over into how responsible they are with money. Their peers will be impressed with their level of maturity and you'll be proud of their growth.

These are great ways to get your children invested in money matters. There will be many other opportunities for you to take advantage of in laying your child's financial foundation. Remind your child that charity is important and that even a small financial contribution will help others. Let your junior accountants practice their math by re-counting your change after you leave the register, for accuracy. Create a cool personal budget sheet for your teens to use to keep track of their spending and savings. This will help them later in college. As a Mom, know that each interactive learning activity you create and encourage builds your children's financial foundation so they can survive successfully in life.

Copyright 2006 Pat Brill