Children_and_Money_mini.ppt

CHILDREN AND MONEYMINI-LESSON INTRODUCTION This mini-lesson includes learning objectives, background information, discussion questions, an activity, and sources of additional information. OBJECTIVES Learners will: Understand the importance of money management skills for children. Learn age-appropriate ways to developfinancial awareness and skills.  Use allowances to help children practice financial responsibility. FINANCIAL FACTS Children and teenagers earn, save, spend, and borrow billions of dollars each year in the marketplace. They have more money to spend than previous generations and develop spending patterns at a younger age. More Facts Childrens attitudes about money are most influenced by their parents, the media, their peers, and their own successes and failures in spending money. The buying habits of children and teenagers are learning experiences. More Facts Their money management skills will develop from the ideas, attitudes and spending habits they learn at home, school and in the marketplace. Those who learn good money management skills are more likely to become adults who can make sound financial decisions, avoid excessive debt, and manage income and expenses to reach their financial goals. PARENTAL RESPONSIBILITY Parents can help children become effective money managers and responsible buyers by teaching them money management skills from an early age. Financial education should be based on the needs, interests, and abilities of each child. The following guidelines may be helpful: Under 5. Around age 3 Parents can start talking to their children about money. Teaching them how to identify and count coins and cash. Between 4 and 5, good savings habits can be taught. Help them learn that saving for a specific item and then buying it gives great satisfaction. Take your child to the store to actually see a toy he or she saw advertised. Together, examine the toy and decide if it lives up to the promises made in the commerci