Kids And Money

How long could you survive if you lost your income tomorrow? A year, six months or like the 48% of people in the USA, around 30 days. It is a startling statistic don't you think? Shouldn't there be more talk on problems like this. More education of the general population to warn people that they should be aware of these problems.

Do you have kids? If so, do you have a plan to talk to them and educate them about money? Believe me, unless the school system has changed in the last ten years, schools are not doing this. I had no education on money or doing a budget. I had heaps of education on science, foreign languages and history. Three subjects I have never used in a job or home situation. However, home budgeting in my 12 years of school never even got a mention.

Unfortunately (or fortunately) we the parents must pull our kids aside and talk about budgeting. We must tell them what it takes to survive in the real world of bills, insurance, bank managers, home loans and supermarket costs.

Here is a nifty idea to approach the subject of home budgeting with your kids. Let's say little Johnny or little Janie wants a new iPod. You know the one, all their friends have one and they need it to look cool. Find out the cost of a new iPod. Next time you go supermarket shopping, grab the receipt. Put all the groceries out on the kitchen table. Grab a pen and start collecting groceries that add up to the cost of the iPod (or thereabouts).

Call Johnny or Janie. Show them the groceries set out on the table. Then tell them, this is how many groceries it takes to purchase a new iPod. This is what else the money could buy. Then divide the cost of the iPod by the amount you get paid hourly. Explain that to afford one new iPod it takes you xx hours and xx minutes of work. Hopefully, this should get the message across that money does not grow on trees.