7 Tips to Raise Financially Savvy Kids

View as Slideshow

© BananaStock/Thinkstock
Show them money going in, not just out.
If your kids only see you with drawing those $20 bills from the ATM, they’re going to think machines hand out money. Make sure they also see you depositing funds.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

© Flying Colours Ltd/Digital Vision/Thinkstock
2. Teach them to set goals and save for them.
Label a jar with a set amount of money to be used for something specific. Start small-say,$5 to buy some ice cream and sprinkles. Collect $5 worth of change in the jar and count it out before buying the treat.Keep this money separate when you go to the store, so your child can buy the ice cream himself with the cash.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

© iStockphoto/Thinkstock
3. Differentiate between wanting and needing.
You need shoes, but you want the trendiest brand. You need food, but you want to eat out.Apply this rule to anything you buy and to any of their requests for “stuff.”

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

Content continues below ad

© Jupiterimages/Comstock/Thinkstock
4. Make choices, not sacrifices.
Instead of saying 'We can't afford that,' That's too expensive,' or just saying no, substitute a comment that expresses an intentional choice. Examples: 'I want to stay home and visit state parks this year so we can save for a special vacation next year. 'I choose to bring my coffee (or water, or soda) with me and not buy it at the convenience store so I can save that money for more important things.' Instead of feeling that 'no' means sacrifice, scarcity, or embarrassment, children learn that life is about making choices.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

© David Sacks/Lifesize/Thinkstock
5. Show them you’re planning for the future.
In addition to using a change jar to save for special treats, let your kids hear you talk about saving fora new roof, paying off the car, putting money aside to celebrate a birthday, saving fort heir education, and paying bills on time.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

© Jupiterimages/Comstock/Thinkstock
6. Give to others.
Along with that jar for ice cream,label another jar for charity.Make sure your children put a fixed percentage of their earnings and allowance in it. And make sure they see you giving to others, whether it’s tithing to the church, writing a check to an on profit, or volunteering for a charitable cause.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

Content continues below ad

© George Doyle/Stockbyte/Thinkstock
Turn off the shopping channel.
Keep TV time to a minimum to avoid the“buy me” ads that dominate.Also point out the marketing tricks that advertisers use, and make sure your kids understand how they try to sell.

Plus:
13 Things Your Financial Adviser Won't Tell You
10 Smart Money Moves to Make in 2010

Become more interesting every week!

Get our Read Up newsletter

how we use your e-mail
We will use your email address to send you the newsletter each week, and we may also send you occasional special offers from Reader's Digest. For more information please read our privacy policy.

Funny Jokes

Some people like to travel by train because 
it combines the slowness of a car with the cramped public exposure of 
an airplane.

Dennis Miller

Funny Jokes

I think my pilot was a little inexperienced. We were sitting on the runway, and he said, “OK, folks, we’re gonna be taking off in a just few—whoa! Here we go.”

Kevin Nealon

Funny Jokes

“I can’t wait until your vacation is over.” 
—Everyone following you on Instagram

@kristencarney

Funny Jokes

A man knocked on my door and asked for a donation toward the local swimming pool. So I gave him a glass of water.

Comedian Greg Davies

Funny Jokes

Just found the worst page in the entire dictionary. What I saw was disgraceful, disgusting, dishonest, and disingenuous.

@sixthformpoet

Funny Jokes

Client: We need you to log in to the YouTube and make all our company videos viral.

From clientsfromhell.net

Funny Jokes

My cat just walked up to the paper shredder and said, “Teach me 
everything you know.”

@NicCageMatch

Funny Jokes

“Just because you can’t dance doesn’t mean you shouldn’t dance.” 
—Alcohol

@yoyoha (Josh Hara)

Funny Jokes

My parents didn’t want to move to Florida, but they turned 60 and that’s the law.

—Jerry Seinfeld

Funny Jokes

Q: What do you call an Amish guy with his hand in a horse’s mouth?

A: A mechanic.

Reader's Digest Survey