Money Doesn't Grow On Trees

From the book "Let's Get Real About Money!" by Eric Tyson, here are ways to teach kids that money doesn't grow on trees (especially right now!) :

- Realize that kids learn what they live. When you ring up a load of credit card debt and fail to save anything, that's what your kids come to see as normal.
- De-program your kids. Let them know that it's not a good idea to run up debt just so that it's easy to 'buy now'.
- An allowance is a great teaching tool. Teach them how to earn money and be responsible with saving, investing, and spending it. Experts say a great time to start is in the five-to-seven age range. You can even teach them about mutual funds and picking stocks.
- Reduce their exposure to commercials. Enough said.
- Find entertaining ways to teach good money habits. One recommended book for younger kids is "The Berenstein Bears Get the Gimmies". For late elementary school-aged kids there's the book "Quest for the Pillars of Wealth" by J.J. Pritchard. It's a chapter book that teaches personal finance concepts through an engaging adventure story. You could also get them a subscription to "Zillions", a kids' magazine from the publishers of Consumer Reports.
- Teach them how to shop wisely. Comparison shop and use coupons in front of them.
- And, finally, encourage older kids to get a job. Even if it's a paper route or yard/lawn work.