Page 8 THE VILLADOM TIMES III • September 8, 2010 �������������� (ARA) Children learn the basics - math, English and science - at school. But when it comes to learning about saving and spending money wisely, the lessons begin at home. Experts agree that helping children understand finances ����������������������������� is very important, so that when they graduate and live on their own, they can fend for themselves and be financially ������������ secure both in their daily lives and their future. According to a National PTA ��������������������article on FamilyEducation.com, “money gives people -- both young and old -decision-making opportunities…Educating, motivating, and empowering children to become regular savers and ������������������ investors will enable them to keep more of the money they earn and do more with the money they spend.” Here are some tips to help you educate your children about good money management: Help them establish a savings account. Children accumulate money in many different ways - Teach your children about good money management ranging from birthday presents to jobs they have organized like walking a neighbor’s dog or mowing lawns. But putting that money into a piggy bank doesn’t do anything. Explain about interest, and find a bank or credit union that offers accounts that don’t charge monthly fees, don’t require a minimum account balance, have good interest rates and are insured by the Federal Deposit Insurance Company or the National Credit Union Share Insurance Fund. Set a budget for yourself and your children. Children follow by example, and you can make a good impression by showing them how you stay within a budget - whether it’s for food, utility bills, or family activities. Help your kids establish a budget, and explain the differences between needs and wants. Make it fun with an app. Check out Save! The Game, a free app parents can help their children download from iTunes for a fun “needs vs. wants” game. Also, consider speaking to children about establishing a savings plan, and how much of their income they should put away for the future. This is a good time for them to plan for larger upcoming expenses like owning a car, paying college tuition or renting an apartment. Discuss ways your children can add to their income. Determine if you want to establish an allowance, or encourage them to be entrepreneurs and start their own business: set up a lemonade stand, wash cars, mow lawns and rake leaves, clean garages, babysit, etc. Helping them develop a good work ethic when they are young will also help them foster excellent employment skills when they join the real world as adults. Encourage them to contribute back to society. Children may have an organization close to their heart or family they want to support. Help them research various organizations and encourage them to contribute to those they have chosen based on that research. vt vt