The crisis on Wall Street is affecting everyone from York Avenue to Yerba Buena. You’ve told your kids a million times that “money doesn’t grow on trees,” but in this spend-happy city maybe it’s time to give them a hands-on lesson in finance.
Entrepreneur and Brooklyn dad Alan Wolan, author of Moneyology 1: A Kid’s Guide to Money, (the first of a 10-part series) says knowing how to manage money is the second most important skill in life (the first: knowing how to get along with people). He advises parents to teach young kids (and maybe themselves!) the following:
Fantastic Four: There are four things you can do with a dollar — spend it, save it, invest it or donate it. Buy a four-chambered piggy bank so kids can start getting used to the idea of dividing their money.
Origin of $: Most people are taught that they have to work hard for their money. That’s great for instilling a good work ethic, but it’s also important to learn how money can work for you through skillful investing. Help your child invest some of his money in the stock market and make a game of checking the stock prices on your iPhone.
Neat Freak: Uncrinkle your bills and keep them in order in your wallet. Sounds ridiculously simple, but it’s a great precursor to organizing files when the tax man cometh.
Cash is King: People tend to spend more with credit cards; they swipe, sign and never look back. It’s more painful to sit and count out the proper bills and see how much money you’re really spending. Create good spending habits early on.
Negotiating: Another great skill to learn early in life. Prices are flexible. And comparison shopping is now easier than ever thanks to the Internet. It’s all about maximizing your assets.
Visit moneyology.com.
– L.B.

