Teaching Kids About Money

kid moneyHere are 10 some smart things to know when teaching your kids about money.

  1. Start early in life and modify to be age appropriate. Get young children (ages 3-6) involved in the grocery shopping and have them choose which items to buy based on a pre-set amount.  As they get older (ages 7-13), concepts such as comparison shopping, growing your money through saving and investing, and borrowing money become important.

  1. Walk your Talk.  Impulsive buying and racking up credit card debt are behaviors that don’t go unnoticed by your children.  Don’t shy away from explaining to your kids where all that money in a paycheck goes. It’s invaluable for them to learn that just because something looks good, it doesn’t mean you buy it.

  1. Don’t underestimate the allowance.  Once your child starts school, introducing an allowance is a good idea.  Treat their allowance as if it were their own paycheck and set aside 20-30% to savings.   As they get older, you can start to allocate a portion of their allowance to pay for something that they really enjoy. They’ll learn about budgeting, savings and also comparison-shopping to find the best deal.

  1. Give them the power of earning money on their own.  In addition to an allowance, encourage your child to earn money through projects or help them to brainstorm ways to make money. Once they start to earn money through their own hard work and effort, their interest in learning about money management also increases.

  1. Get your kids involved in budgeting.  It’s helpful to include your children in planning for large family expenditures such as vacations and summer camps. How you came up with the budget number is just as important as what it is – especially if it was derived from a monthly savings that you’ve set aside each month.

  1. Encourage them to participate in saving or investing their money.  It’s never too early to open a savings account so they can learn the concept of compound interest. Use allowance and earned money as a way to show how their income can be allocated to different buckets: short term spending (candy at the movie), long term savings (new mountain bike), and investment for their future.

  1. Set financial goals to teach savings and borrowing.   Rather than buying the latest product automatically, show your child how to save for these items. Lend them money at a simple interest rate so they learn the concept of time value of money.

  1. Make it a game.  Every kid, no matter the age, likes the challenge of a game.  Make it a family game night and bring out the Monopoly or Life board games.  There are computer games that teach kids the basics of running a business such as Zoo Tycoon and Sim Coaster.

  1. Start using online financial tools now.  If your child uses a checking or credit card account, there’s no reason why they shouldn’t also track their spending and savings using the latest tools. New services like MoneyStream uses a simple calendar based system to show where money is going and analyzes past spending to predict future inflows and outflows.  If your child is in college you can easily monitor the checking balance and know when to make a transfer (or give them a refresher course on managing their money).

  1. Check out more resources for teaching kids.  There are many resources that provide guidance for teaching kids good money management skills.  Moneyasyougrow.org, Warren Buffet’s SMsCKids.com (Secret Millionaire’s Club) and, Independent Means (www.independentmeans.com) are just a few to check out.

Christy Ross, the Chief Marketing Officer of MoneyStream and a mother of 3 boys, has built a long career in the financial industry. When she’s not balancing the demands of 3 busy boys (ages 6, 10, and 13), she’s helping financial technology start-ups grow. While sometimes missing the mark on walking the talk (don’t we all), she strives to help her kids become good stewards of their money and ultimately their life.

Top Tips for Mom Inventors

by Tamara Monosoff

What many multi-tasking moms don’t realize is that they already possess the necessary skills to become successful entrepreneurs.  These essential skills are practiced and strengthened on a daily basis such as; coming up with creative solutions to everyday problems, extraordinary time management (getting kids to school, activities, doctor’s appointments, grocery shopping, preparing meals), stamina (staying up all night when the stomach flu hits the household), all while living within a budget.  In fact, these skills are directly transferrable to launching and running a successful business.  When I hear a mother say, “I’m just a mom, I can’t run a business,” nothing could be further from the truth. And, becoming an entrepreneur has benefits such as a flexible schedule and an opportunity to contribute to the family income.

For the past ten years, I have seen thousands of people transform that initial idea into creative, money-generating new products.  And, with the resurgent economy and awesome new resources available for developing, manufacturing, funding, video marketing, selling and distributing products, the opportunity for inventive product entrepreneurs has never been better.

Every entrepreneur’s journey is unique, but like any new endeavor, the most important steps are the first ones.

Below are seven tips to get you started on the right path:

  1. Treat Your Product Idea as a Business from the Start. There is no true short-cut. With an open mind, analyze and understand the design and production costs, market size, selling price, profit potential, and competition BEFORE you spend money bringing your product to market.

  2. To Patent or NOT to Patent? A patent can be a useful tool but it is not a requirement and sometimes a waste of precious resources. Consider taking advantage of a Provisional Patent Application (PPA) first. It is a placeholder that will buy you 12 months of time before you have to officially file a utility patent.

  3. Make it Simple. Many new product ideas include flashy features from electronics to excessive bells and whistles that drive up production costs and the retail price. Creating high-quality products with fewer features–but priced right — can mean more sales and money in your pocket.

  4. Raise Smart Money. Use crowd-funding, microloans, credit lines, and new online options that fit your business. There has never been a better time to fund your business.

  5. Bring Your Product to Life with a Prototype. Start with something basic that will be refined over time. It does not need to be expensive or fancy.

  6. Be Cautious of “Opportunities.” Be careful to scrutinize companies that offer to market or license your product with sweet deals that sound too good to be true. Use the same good practices you would use to select a contractor, plumber, or new nanny.

  7. Celebrate Your Successes…Large and Small. Recognize setbacks for what they are an unavoidable — and sometimes the most valuable — part of the journey. This is an opportunity to build a business and life that you LOVE.

There are many steps along this journey but with the abundance of new resources available you can take your idea and run.  As Julie Martin-Allen, Senior Director of Showcase Events for Sam’s Club said in the foreword of my new book, “My final advice to those readers who aspire to see their products on the shelves of the nation’s top retailers; be courageous and go for it!”

For more resources on funding, manufacturing, publicity and managing your business check out The Mom Inventors Handbook, How to Turn Your Great Idea into the Next Big Thing, Revised and Expanded 2nd Ed (second edition), released on April 1, 2014.

 

Tamara Monosoff is an award-winning inventor, educator, media contributor, speaker and author of six bestselling books; including the new interactive version of The Mom Inventors Handbook, How to Turn Your Great Idea into the Next Big Thing, Revised and Expanded 2nd Ed(second edition). If you need help getting started, Tamara offers Power Mentoring Programs that will rocket you to success! Visit: www.TamaraMonosoff.com.