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7
steps to teach your kids the mysteries of money (cont.)
Step 4: Make sure your child understands the
connection between work and paychecks and taxes.
While I don't advocate sharing the entire family budget with your
children, it's never too early for them to watch you use your Microsoft
Money software to sort out your spending and investing decisions. Let
them know that the hours you work translate into the dollars you can
spend. And be sure to give them some idea that the government takes
about one-third of your earnings in taxes!
Step 5: When your child is at an appropriate
age, encourage him or her to get some work experience.
It could be as simple as walking the neighbor's dog or
baby-sitting. Later on, it could be bagging groceries at the local store
or working in a restaurant. By the time your child receives a paycheck,
minus taxes, the concept of spendable income vs. savings will become
very real.
Step 6: Make investments for children in stocks
or mutual funds -- and explain them to your children.
If young children are aware enough to be targeted for marketing
by big consumer companies, they can certainly recognize and distinguish
between brands. And if there are brands they use and like, by all means
invest in a
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few shares of stock. Then they'll get annual reports with
pictures of the company's products, and perhaps feel some pride of
ownership.
There
are several tools that are designed to teach children about investing.
Please feel welcome to contact one of our investment representatives at
(419) 332-7301 for more information.
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