Train up a child... raising money smart children

On Sunday, January 30, 2011, Larry Johnson of FACTS Life Group, joined me on Current Events with Patrick Cook. One of our discussion points was about starting children out early learning about money. Basically, Larry and I were saying, "...we teach children how to walk, talk, read, write, as well as, table manners and how to clean up after themselves. However, very seldom do we teach them about finance.

A recent article in Black Enterprise shared our sentiments. LaToya Smith writes, "In recent years, more states have placed a focus on personal finance education in our nation's schools, but only 13 states require that a personal finance course be taken as a high school graduation requirement according to the National Council on Economic Education. Although that’s up from seven states in 2007, there's still much to be done. BlackEnterprise.com and Ylisa Sanford Seymour, CFP Senior Financial Advisor at Ameriprise Financial Services Inc., created some tips to help parents instill the value of money in their children and help them grow into fiscally responsible adults."

In my judgement it should be an essential part of our business to start early. The Good Book says in Proverbs 22:6, "Train up a child in the way he should go: and when he is old, he will not depart from it." Apart of this training should not only be spiritual. But should also be financial.

More from the BE article:

“The earlier you start, the more moneywise children you’ll have,” says Seymour.

• As early as age five, use play money like Monopoly so that they understand that purchases require an exchange at a certain value.
• Show them how to sort coins and teach them their value.
• Share utility bills to show them the direct impact of their behavior, such as leaving lights on or running water when it’s not in use.
• Use the grocery store as a learning tool. Make a grocery list and get kids to cut and organize coupons with you, review the weekly store circular for savings.

Read the full article