Train Up A Child In The Way He Should Go

Parents always seem to be surprised when their children go off to college and come back with either no money or a boatload full of debt.  But what many parents fail to realize is that they did not provide the proper foundation for their children to grasp the vital basics of financial fitness.  Therefore, it is no surprise that many young people fail at finances when left to their own devices without the proper resources.

Thankfully, nowadays there are more resources than ever to assist parents in teaching their children about how to grow up to be financially responsible.  We would like to mention just a handful of the ones worth checking out:

• Sesame Street For Me, For You, For Later— For years, Sesame Street has been a staple to growing children on TV, through toys, and on clothing.  But technology has added a new dimension to Sesame Street with its interactive website, in particular the For Me, For You, For Later section that teaches young children about basic money concepts that will stick with them for life.  Kids watch informative videos and play fun games that cause them to learn without even realizing it.  Whether you want to teach your child about making wise choices, working a job, or learning to wait, the Sesame Street gang can bring these foundational truths to life for your young child.  Parents and educators will appreciate the sections targeted towards them that offer downloads and tips to allow children to get the most from the website, and have the financial foundation that will make them strong for life.

• ING Direct’s Planet Orange—  ING Direct has been leading the market with their online banking business, but now they want to give kids a strong start by teaching them about spending, saving, and investing through their fun and colorful online website.  The site is directed towards kids in 1st- 6th grades, and contains special educational sections for parents and teachers on how to best utilize the site.  The website features various locations that offer lessons on different money concepts, including risk assessment, money management, and why money is important.  Interactive and entertaining, Planet Orange engages children by using cartoon characters, and offers kids the chance to earn virtual money called Obux, allowing them to make financial decisions in a safe environment.

• Northwestern Mutual’s The Mint— For older kids and teenagers, this website offers a sleek, more mature design that will draw their attention, and encourage them to realize that they are getting older, and therefore, they are more responsible for their actions.  There are separate sections for older kids and for teens.  Parents and teachers are provided with their own sections filled with tips and pointers for getting the most out of the site.  For teens in particular, this website treats them as the future adults that they are, and starts teaching them about more advanced financial concepts, like the different types of interest, goal-oriented savings, and paycheck deductions.  The Glossary offers an extensive list of money-related words with easy-to-understand definitions, making it an invaluable resource for all ages.  The website keeps things fun and interactive by combining short, succinct articles with polls, games, and do-it-yourself activities.

Now that you have some free resources to check out, here are some tips to remember:

• Start early:  Even young children can learn to understand how money works and about financial consequences, so do not be afraid to teach simple concepts even from toddlerhood.
• Nothing comes easy:  Even allowances should come with some responsibility, like chores or errands.  Allow older kids and teens to take on part-time jobs to learn the value of money and importance of working.
• Limit the temptations:  If you must pay for your college-age kids’ expenses, choose to give pre-paid gift cards or credit cards that require strict spending management.  Cell phones can be provided with pre-paid cards that prevent over usage.

Teaching even a young child the basics of money management can help to ensure that he will grow up to be a financially knowledgeable and responsible adult.  Your forethought and efforts today can help your son or daughter to avoid heartbreak and trouble in the future.