Money Smarts for Kids: Recession-proof Your Kids

I know you love your child, but if you ever want them to ever leave the nest it is imperative that you teach your child about finances. After all, the media takes a very active role in instructing children. From the obvious commercials and advertisements to showing must-have items on favorite television shows. It is well-known that product placement is an industry standard, but parents are often oblivious to the pull these subconscious pull lifestyle images can create.

Budgeting
Regardless if your child is ten and getting a small allowance, working odd jobs at twelve or juggling a part time job at sixteen you can lay the groundwork to not only help them keep tabs on their money, but keep their perspective on money realistic and healthy. Just like they cannot pay for a twenty dollar item with a five dollar bill, debt is an obvious disadvantage when seen concretely.

Break the cycle
In the past, when economic hardship hit, people learned to conserve and build a reserve. This time around it seems kids have not learned this concept. Partly due to the fact that credit card issuers have worked hard to develop programs that give them access to schools. They are free to market so-called "finance education" that is ultimately designed to hook kids on a negative debt cycle.

Produce producers, not consumers.
Stop listening to the chatter, you and your children are not just consumers. Change your perspective and teach your child to think of themselves as producers. Come up with a list of things they can produce, things that other people need or want. These can be actual products, or services such as lawn mowing or babysitting.

Become ad-savvy
Help your child consider the source when watching commercials and other media messages. They may show people happily spending money without thought, or worse, buying things that will "make" them happy. Overspending and debt does not equate happiness. Be sure you are modeling the right mindset as well.

Take advantage of the real-life economic crisis by using it as the teachable moment that can protect your off-spring's future. This multi-billion dollar marketing program is not only intended to pull money from our pockets, it is also changing the way children think. Be proactive and recession-proof your kids so they do not become financial victims.


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