Feb 19, 2010

Children, Money, and the Family Budget part II

My daughter is in high school. She doesn't have a formal job yet, but she babysits and does other odd jobs. Like most girls her age, she wants everything: clothes, music, fast food...

She now has her own checking account. She has her own debit card on that account. Under my loose supervision (because she is a minor, my name is on it too) she is learning what things cost. If she needs lunch money, she'd better write a check to the cafeteria to put on her lunch account. School fees or activities due? Hope you brought your checkbook. Going out with friends? Bring your "swipe swipe" card.

Instead of paying her bills, we are paying her. She's paying the bills. When the money's gone, she will realize the logical consequences of having no money in the account: borrowing lunch money from friends, skipping the movie & staying home, no new clothes.

Before she ever graduates from High School, she will know that more work brings more money, she will know what things cost, and what it's like to live within a budget.

That is an education that schools cannot provide. If parents don't teach their children the basics of financial literacy, who will?

What will you teach your children today?

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