| Greetings!
Welcome to the April edition of the Kidnexions Connection. Our goal is to provide you with useful information about kids and money with an emphasis on making connections between what kids learn and their every day lives.
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| Company News |
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 Are your kids looking for ways to earn a little extra money for their summer fun? How about a kids' only yard sale? No, mom and dad, no old lawn mowers. This is kids only. Kidnexions will be sponsoring a kids' only yard sale at a local elementary school in May. We will keep track of everything we do to make this a successful sale and post check-off sheets and tips on our website so that you can set one up in your neighborhood. Thanks to Keshelle Kerr of Camp Millionaire Bahamas for introducing us to this neat idea! |
| Teachable Moments |
The best way to teach kids financial literacy is in the context of their everyday lives. Here's this month's teachable moment:
Let's say you're out shopping with your kids. You see something you'd really like to have but you already know in your head that you're not going to get it. This is the perfect time to teach your kids how you arrived at your decision. To underscore the lesson, you may need to ham it up a bit. It may seem silly at first but if you really want to teach your kids how to solve problems, they're going to need to "see" you solve some!
"Oh my gosh, this is sooooo cute. And it's not too expensive. But I've been trying hard not to put anything unnecessary on the credit card. If I was honest with myself, I already know it's more of a 'want'. What to do? What to do? Well, as much as I'd like it, it's not really a need so I'm going to pass it up. (sigh) Okay, that wasn't so hard."
You get the idea. It will need to fit your 'style' but thinking out loud is such a powerful way to teach kids how to make decisions. There are times when direct teaching is the way to go. And there are other times when indirect teaching actually works better. It's the stealthy way to teach! And it can be a lot of fun.
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| April Connection: Financial Literacy Month |
To celebrate National Financial Literacy Month, this month's Connection is putting forth a challenge. Just like we talk about ways to get kids in the habit of saving money, we'd like to get you, the parents, in the habit of "doing" money with your kids through everyday experiences. See if you can complete the following list with your children during the month of April. A KidsSave icon  appears next to the ones where KidsSave can help make the tasks easier.
- Discuss the difference between needs and wants. Go over a variety of examples and discuss the levels of needs and wants. For example, a cell phone may be a need for security purposes, but a cell phone with all the bells and whistles goes into the 'want' category.
- Keep track of all your spending for two weeks. Write 'N' next to the needs and 'W' next to the wants. At the end of the two weeks, rank all your wants from 1 - 10, 10 being you'd do it again. Discuss where spending changes need to be made, if any.
- Set up a personal financial goal. This can be to buy something you want or to save a certain amount of money. Work towards achieving it.
- Research with your child a local charity and make a donation. Match whatever amount your child decides to give.
- Have your kids help you make a shopping list before you go out (grocery, school supplies, etc.) and shop by sticking to the list. Tell your kids that they will spend less money if they make a list before shopping.
- Teach your child how to comparison shop. The grocery store is a great place to do this. Or clothes shopping for older kids. Be sure to discuss value, as well. Cheaper is not always better.
- Have your child plan a family dinner (or restaurant to eat in) and stay within a given budget. This can be a great way to accomplish the comparison shopping item above.
- Explain car and homeowners/renters insurance. Explain that, although it may seem like a waste of money, having insurance is a smart money choice. How much would it cost if something happened and there was no insurance?
- Show them the power of compound interest....
- ...now tell them about the "bad" side of compound interest....credit card debt. Have them predict how long it would take to pay of a $1000 swanky big screen TV, paying only the minimum at the average interest rate of 14%. (13 years and $1000 in interest) Although your kids may be young, impress upon them the importance of paying off cards every month. (See the SNL clip below.)
And for a little light humor, here's a Saturday Night Live clip about buying stuff. Hmmm, sounds like pretty good advice
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