Personal Finance

[Jane Elliot]

What do you use (besides Dave Ramsay) to teach personal finance?

[regentrude]

Our family finances and allowance ;-)

 

We teach personal finance by showing the kids the kinds of financial decisions we are making, explaining choices, modeling responsible behavior, and letting them practice with their own limited allowance budget. We lead an ongoing conversation about financial issues that get revisited whenever something comes up.

[Halftime Hope]

We are using Dave Ramsey and our old books from Larry Burkett, but practical experience is very helpful. : )

 

Seriously, from the time our kids are tweens, we've given them a yearly allowance for clothing in the family budget. They have had to make their choices about how to spend it. We had one youngster who wore a coat with very *embarrassingly* short sleeves one winter due to poor planning.

 

Although it felt very awkward to me, when dd went off to college, dh transfered a chunk of "start-up" cash to her account, and then reminded her that from then on, she was responsible for x, y, and z categories of providing for herself, his theory being that he wanted her not to be paralyzed with a huge transition when she graduates college; she needs to be used to planning and managing the majority of her expenses.

 

She really wants a car, but based on the real-world expense data on the care and feeding of a car (we've had some large used-car repair bills recently, the kind you'd have with a car she can afford), I'm betting she'll find it easier to ride her bike another year and save for a bit nicer beater. : )

 

Real world experience is a good teacher.

[Angie in VA]

Our family finances and allowance ;-)

 

We teach personal finance by showing the kids the kinds of financial decisions we are making, explaining choices, modeling responsible behavior, and letting them practice with their own limited allowance budget. We lead an ongoing conversation about financial issues that get revisited whenever something comes up.

 

This, but no allowances. Payment for chores done. (Fines for chores not done. And the fines are higher than the payments.)

[REv1053]

This, but no allowances. Payment for chores done. (Fines for chores not done. And the fines are higher than the payments.)

 

I did this same thing for about two years. Then my 14yo, revolted. He hasn't done his chores, has no spending money and now owes DH and I $50 or so. Now what?

 

I hav no advice since this seems to be a place I am NOT excelling at right now.

[Shellers]

The Complete Guide to Personal Finance: For Teenagers

 

[elegantlion]

Someone linked some great options recently. I bookmarked one, but my computer died and I lost it. Found it, Moneyskill, and it's free. http://www.moneyskill.org/

[FloridaLisa]

Luanne,

 

In addition to much of the advice already given, I've been fairly transparent about the financial decisions I make and how I go about making those decisions. I've discussed:

 

*types of insurance and plan to walk my older two through an auto and home policy including declarations page this summer;

 

*saving and investment vehicles including those that we've chosen to use and those we don't;

 

*how I have specifically invested within those investment/savings structures -- CDs, money markets, mutual funds, real estate;

 

*taxes including walking them through the tax return;

 

*dumb money mistakes we made, things I wish I had better, and money decisions we made right.

 

*folks I know that are making wise decisions and not-so-wise money decisions. Obviously, I don't draw attention to this all the time, but there are times when I think it's wise to point out a real life situation and the life principle behind that, hopefully to save my kids some pain if they'll learn from the wisdom/foolishness of others.

 

I decided to be purposefully as transparent as possible with my kids once they were old enough just as I would teach them how to clean a bathroom. :o)

 

HTH,

Lisa