The best way to teach kids financial literacy is in the context of their everyday lives. Here's this month's teachable money moment:
Back-to-School season offers a great opportunity to teach a few lessons before a single textbook gets opened. Here are three:
Lesson #1: It's hip to be frugal. Who says you have to buy brand new stuff for school? With the help of your child, go through last year's school supplies and determine what can be re-used...pens, pencils, binder, backpack, spiral notebook with only two used pages. Then, to get in the school spirit, try this analogy: Left-over pizza is to your tastebuds as left-over highlighter pens are to your _______. answer: wallet!
Lesson #2: Never leave home without The List. Want your kids to spend less money when shopping? It's as simple as writing everything down. Have your kids create a back-to-school shopping list then stick to it as you shop for the items. If your child sees something that he has to have that is not on the list, let him spend his own money on it.
Lesson #3: Savvy shoppers love to compare. Using newspaper circulars or even the internet, teach your child how to find the best deals on supplies and clothing. And to cut down on store-hopping, show your child how you can use a coupon or circular from one store and receive the discount for the same item at the store you're currently in!