How To Teach Your Kid Money Management
Plastic Money
Now-a-days every teenager is carrying a card. Your kid too will, very soon. So prepare him before. Explain him clearly the difference between a credit card and a debit card. Tell him about the risks involved in using a credit card. Tell him about the monthly repayments and the credit limits. Introduce him to savings accounts. At this stage, you can open a savings account for him.
Investing
Now that your kid is acquainted with the essentials-savings account, concept of credit-you can introduce him to investing. First, let him sit with you when you are taking your investment decisions. Then introduce him to simple and safe investment options-certificate of deposits, savings bonds. Let him learn about mutual funds and stocks.
Resources
To teach a kid–with his short attention span and various other interests—the boring and complex issue of personal finance is certainly a cumbersome process. So, you should try to make it a fun process. Luckily, there’re a number of tools available in today’s market to make the process interesting and fun- filled.
Books- The Berenstain Bears Get The Gimmies, Quest For The Pillars Of Wealth
Magazine- Zillions
Board Games- Monopoly, Life
Virtual Resources To Teach Stock Market Basics-Money Game, Virtual Stock Exchange, The Stock Market Game, Investsmart Stock Game.
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