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Teach them to be charitable . Help your children experience the good feelings of sharing their income with others. Encourage your children to regularly contribute a portion of their income to a charity or help them buy treats for the family. “Adopt” a family through your church, synagogue, or community during the holidays or give your children the responsibility of buy- ing or making birthday gifts for friends. Also, teach your kids to contribute in ways other than giving money by giving time, energy, and skills to help someone else.
Planning for vacations . Help chil- dren plan a family vacation. Involve them in the decision-making process
for all aspects of the trip, such as food, travel, hotel, souvenirs, activi- ties, etc.
Understanding compound interest . Teach your children the benefits and penalties of compounding interest. Teach them they can earn inter- est by matching their savings 25 cents on the dollar or help them open a savings account or mutual fund. Teach them the drawbacks of paying interest when they borrow or purchase on credit.
Savings and checking accounts and credit cards . When your kids are mature enough, help them open a checking and savings account and teach them how to balance a checkbook. If your teenager is financially mature enough to apply for a credit card, find one that allows you to set the spending limit and receive a monthly statement of your child’s purchases. Review the monthly statements with your child and teach the importance of paying the balance each month.
Teaching Children About Money