I ran across this article by Janet Bodnar at Kiplinger’s online today: Six Money Skills for Kids to Master.
Here is the list:
1. How to handle a cash allowance.
2. How to save for a goal.
3. How to compare prices.
4. How to manage a checking account.
5. How to appreciate the magic of compound interest.
6. How to get out of debt (or not).
There are some great ideas here; it’s worth a read.
My favorite is #5. I like to fascinate my kids with the example of compound interest where Sally invests $1000/year for 10 years and then stops and lets her savings site for 20 years. Susie invests nothing for the first ten years and then invests $1000/year for the next 20 years. Assuming the same interest rate ( in this case 6%), who has more at the end of the 30 year period? Sally, of course, even though she’s invested $10,000 less of her own money.
My kids pretend to be interested (actually, no they don’t) but I know they’ll look back someday and remember.