How to Make Your Kid a Money Genius

How to Make Your Kid a Money Genius

If you're like most parents, you dream of raising financially successful children. Read on to find out how to start conversations about money. 

Do you fantasize about raising your kids to be financially successful adults? At the very least, all parents want their children to become independent grown-ups who know how to spend responsibly, live within a budget and save for the future.

How do we get there, though? How can we inspire a healthy attitude toward money in our somewhat impulsive and irresponsible children?

Education First FCU has put together an eBook called Essential Money Lessons for Kids that will get you started with teaching your children about money from a young age. It includes age-appropriate  exercises for you to go over with your children, and provides tips and ideas on how to introduce them to smart money concepts.

If you would like a deeper dive, Beth Kobliner’s book, Make Your Kid a Money Genius, is the one for you. In it, the personal finance expert takes parents on a journey of financial education, showing them how to turn inexperienced kids into miniature money geniuses.

When discussing money with children, it’s important to strike the balance between honesty and TMI. To that end, the Education First eBook details a list of things you should and shouldn’t tell your kids - such as exactly how much money you earn, or which parent brings home the bigger paycheck.

The core of our eBook is structured around money management concepts and divides them out by age. It tackles topics like earning, saving, spending, giving, and more. Each section breaks down the subject into language you and your kids can understand. It also includes information and exercises that will help you approach the topic among three different age groups from preschool to adolescence, so you can teach your children as they grow.

In the section on spending, for example, each age group will be taught an increasingly detailed concept within the broader topic.

If you’re talking to kids of pre-school age, you’ll focus on awareness — simply teaching them that the things you buy will cost money. You’re not going to talk about interest rates and credit cards at this point, but you want your little ones to understand the concept of a money supply being finite and the need to make choices, plus the trade-offs of choices.

For the elementary school-aged kids learning about debt, you can begin introducing ideas like time costing money and credit and debit card security.

The oldest group of kids can handle deeper concepts like interest rates, credit scores, and amortization.

Along with age-appropriate ideas, each chapter includes tips and advice for the adults — like don’t give an 8-year-old your credit card!

While Essential Money Lessons for Kids will provide you with the tools to get the conversation started at every age and stage, it won’t dictate exactly how to approach these loaded topics. If you’re looking for a book that will do all the work for you, you may not find this guide to be sufficient.

However, many parents have found this eBook and Education First's C.A.F.E. program and workbooks to be fun, practical, and helpful tools. If you’ve ever found yourself dreading the inevitable “money talks” with your child, you owe it to yourself — and your kid! — to download a copy of Essential Money Lessons for Kids and sign up for the C.A.F.E. program today.