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Sunday, June 11, 2017

How to raise money smart kids

From our friends at BusyKid, the online chore chart
As a parent, you have a lot to impart upon your children. In addition to helping with homework or homeschooling, you have to teach them about personal hygiene, housekeeping, car care, laundry and financial responsibility. For a lot of us, providing them with appropriate financial literacy falls to the wayside. However, in order to help our kids get ahead we must teach them the basics of financial responsibility at a young age. It’s never too early to instruct them about the value of working hard, saving money, and accomplishing goals, and now that summer is here we can take some of the "extra" time we have to focus on financial literacy for kids.

Here are some ideas to help children become financially literate well before their adult years.

Take time for setting goals

When your child shows interest in a toy, event, or something else that costs money, use it as a teaching opportunity. Rather than tell them to add it to their birthday list or buying it for them, tell them they can earn it for themselves. Give them age-appropriate tasks that can earn them the money for their desired item. This will help them learn responsibility by associating their own efforts with their own rewards.

Start Small

Obviously, children shouldn’t be completely financially responsible for themselves, and it’s okay to buy them clothing and toys they like, but this doesn’t have to detract from the goals they’ve set. Help them set small, manageable goals for anything extra they would like. Teach them to understand time management by encouraging them to save for an event, like a movie with friends, and talk to them about how they’d feel if they didn’t save the amount they needed in time. This also helps them develop the discipline to put off short-term, smaller purchases in order to have enough for the big purchase in the future.

Celebrate Accomplishments

What you emphasize will show your kids what’s important to you, so celebrate when your children meet their goals. Show them that financial responsibility is important to you, and that in turn will make it important to them. Excitedly praise them when they accomplish their goal and bring it up often. Help them feel proud, maybe calling grandparents or other family members to share their accomplishment with others. In particular, acknowledge how they overcame obstacles such as resisting smaller wants to achieve larger goals, or working extra hard to make up for the difference between what they’d normally earn and what they need.

Once they are confident in themselves to accomplish their goals, they will feel empowered to set and achieve larger goals.

Age-Appropriate Financial Goals

Here are some suggestions of age-appropriate financial goals you can set with your children.

Ages 4-7

Working for a reward: Simple chores with direct rewards like small toys or a dollar. Learning to count money: teach them about currency. Learning to save money: teach them to save a dime for every dollar or one dollar for every ten dollars. (10% is an easy amount to calculate.
 Ages 8-11

Comparison shopping: ask for their help in finding the lowest price for similar items. More responsibility: give them larger chores or responsibilities to allow them to earn and manage more money. Long-term saving: help them choose a more expensive goal that requires saving for a longer amount of time.
 Ages 12-14

Teach them the basics of credit: loan them money and require them to pay back with interest to solidify the concept of saving and borrowing. Show work vs reward: Connect the amount of work needed to earn money for a goal.
 Ages 14-18

Open a checking account: teach them to use a debit card and keep track of balances. Save for college: research the cost and set goals to avoid student loans. Get a job: discuss earning money and learning to manage it responsibly. Build savings: start an emergency fund and discuss its importance.

About BusyKid

BusyKid is the first online chore chart where children can earn, save, share, spend and invest real money wisely. Formerly known as My Job Chart, BusyKid is easy to use  and allows kids to receive a real allowance from their parents each Friday. No more points or trying to convert imaginary money.

BusyKid is committed to helping children learn the important basic financial principles they don’t get anywhere else. Designed as a platform that is easy for parents to implement, BusyKid features pre-loaded chores based on children’s ages and making chore payment approvals is as simple as answering a text message. BusyKid is the only online chore/allowance platform that allows children to earn real allowance and use it immediately to buy gift cards, make a donation or invest in real stock. For more information, go to

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