"Quality Choices for all your childcare needs."

CCC is proud to sponsor the Cultural &Educational Cooperative with the Chester County Library System offering greatdiscounts to local attractions!

ClickHere for more information

Ways to Teach Children Financial Responsibility

by Barry R. Shevlin, CFS

Iwish I had a rich dad like my kids do! How many frustrated parents haveexpressed similar sentiments about how their children mismanage money? It's notuncommon for a teenager to slave away at their job all week, then blow theentire paycheck at the mall in 20 minutes and complain about being broke. Orworse, the money simply gets lost. My nanny could make a respectable living frommoney that goes through the laundry in our children's cloths.

Thegood news is children can learn financial responsibility. The bad news is it'sup to us to teach them. Most children and many adults too, don't understand howmoney works or how to use it effectively.

Thebest teacher is hands on experience, so talk about money. Providingallowances is an effective way to teach money management skills. In our home Iencourage regular saving by insisting my children put a percentage of everythingthey earn and receive as gifts away into savings. We have assisted them insetting goals for short term and long term purchases and even giving to charity.I've let them make mistakes and learn the lesson of price vs. quality.

Wework together in choosing mutual funds and stocks. Not only does this help thechildren and my wife learn about the fundamentals of investing, it also providesa common ground for our family's relationship.

Acredit card can be a dangerous weapon in the hands of a teenager, and someadults too. The best way to teach the responsible use of credit cards is tostrictly control use and make sure the children see all the bills that come inand of course pays them off in full at the end of every month.

Teachingby example is still the best teacher. Your children do pay attention to what youdo, including how you manage money. So be sure to practice what you preach. Ifyou do a good job managing your finances, your children will probably grow up todo the same.

Iwould like to share my experiences with any parent who is interested. You maycontact me to receive a free workbook to start on your way to teaching ageappropriate information to your children.

(215)364-8228 * bshevlin@erols.com