Kids and the Economy
By: Colleen | January 07, 2009 | Category: Money
Ok, so the economy has taken the same trajectory as Penn State in the Rose Bowl. This is not news to anyone. While the media is littered with doom and gloom, how do you explain to your kids what's going on?
It's tough to break down a nationwide situation for a child (shoot, I have a hard time wrapping my head around it), but it's never too early to start teaching them about personal finances and the value of the ol' dollar. Before you know it, they'll be applying for a mortgage—better show them how to be sure they can afford it!
The Jumpstart Coalition for Personal Finance Literacy has a really great pamphlet that covers kids grades K-12, and what they should know about finances, broken down by grade level. For example, a 4th grader should be able to explain the difference between a wage and a salary.
Are you getting hit with the classic, "I really need (*need* being the operative word) a ____" line? Here are some tips for telling your kids the facts about money. It helps you establish a budget for them, and provides guidance on establishing a fair and effective way to set up an allowance system for your kids.
Have your kids questioned the current economic situation? How do you best teach them about fiscal responsibility?
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