They will see it. They will try to earn it. They will receive money from relatives or they may even find it under your couch. So, when should you start discussing money with your children? Our money managing experts have some advice to give about the easiest ways to get your children to understand money and its value. Find out the ways they teach children about allowance and spending.
Scott 's Advice
"Start talking to your kids about money when they understand that a babysitter provides a service and gets paid for it."
Mary Anne's Advice
"In the womb is not soon enough. Joking aside, children start to understand money concepts at age 3. Determine if you will use money as payment for chores. Set goals. Consider teaching your children about the value of quality, and also about needs versus wants. Let them manage a small amount for basic purchases like shoes. If they save money, they get it for their own wants, but if they purchase poorly, they will have to work off the additional funds needed."
"Money discussions should be part of everyday life. Kids from an early age should be involved in these discussions. As parents, it is our job to teach kids right from wrong. The same is true about financial decisions."
"I started with my kids around the age of 4. They earn an allowance and have to allocate their pay into savings, spending, and donating."
About the Experts
Scott Shellady began his fiscal vocation in 1990 as the European Managing Partner of Prime International Trading London. He continued his career overseas with high-level positions at Muirpace Ltd, Deutsche Bank AG, and was Managing Director of Futures Operations in London for The Industrial Bank of Japan. Mr. Shellady was integral in building a technology company for electronic futures trading called Patsystems Plc. After 11 years in London, Mr. Shellady returned to Chicago to run the family commodities business that was started 40 years ago. Currently, Mr. Shellady is a CEO of Bradford Capital Management. He is a frequent contributor on CNBC, Fox Business News, Bloomberg and Sky News.
Mary Anne Ehlert is the founder and president of Ehlert Financial Group and Protected Tomorrows, Inc.. She is a dynamic financial expert with more than 25 years experience in the industry, focusing on divorcing and single women as well as widows and families with special needs. Personally and professionally, she knows how caregivers should plan and has shared her expertise with the New York Times, Chicago Sun-Times, and Investors Business Daily. She is a sought-after speaker at national women's, financial, and disability conferences. Find her at Ehlert Financial Group.
Liz Dierking is a co-host of of The LIZ & JNY Show. She has spent eleven years on the Chicago Board Options Exchange floor making markets. During this time, she also acted as a Designated Primary Market Maker, Floor Broker, and Floor Official. She also represented her firm on the Market Performance Committee before joining the TastyTrade Financial Network. After leaving the trading floor in 2010, Liz picked up improvisational comedy as a hobby. She learned to merge her passion for finance with comedy and entertainment. She teaches strategies that give viewers an increased probability of success with a decreased capital requirement.
Jenny Andrews, host of The LIZ & JNY Show, brings six years of trading experience to the tastytrade Financial Network. Beginning her career at the Chicago Board of Options Exchange (CBOE), she was the quickest clerk to move to a market maker seat. Jenny has traded in seventeen pits on the CBOE trading floor and was appointed instructor of an Options Theory Course for one of the nation's largest trading firms. This experience gave Jenny the knowledge to leave the trading floor, trade for herself, and share her expertise with others interested in investing, even if intimidated by the seemingly complex endeavor. Jenny joined Liz Dierking in 2011 to co-host The LIZ & JNY Show where she teaches simplified strategies to novice and experienced traders to take the fear out of investing. The LIZ & JNY Show airs live Monday through Friday from 11:00am CST at TastyTrade.