When is it the right time to talk about money to your kids. You might think, it is time when they begin to earn, or when you assign them an allowance to manage their lunch money. Wrong! That may be too late. Based on a study, the author points out the kids as young as seven and below understand the concept of price and value. In Make Your Kid a Money Genius, author Beth Kobliner compiles all the information you need to engage your kids and teach them behaviors that will make them a genius at handling money – even if you didn’t do it that well.
Beth Kobliner is a personal finance commentator and journalist, and the author of the New York Times bestseller Get a Financial Life. A former staff writer at Money magazine, Beth has contributed to The New York Times and The Wall Street Journal and has appeared on CNN, MSNBC, Today, Sesame Street, and NPR.
Make Your Kid A Money Genius (Even If You’re Not): A Parents’ Guide for Kids 3 to 23
Author: Beth Kobliner
Publisher: Simon & Schuster (February 7, 2017)
ISBN-10: 1476766819, 978-1476766812
Make Your Kid a Money Genius Review
I don’t know exactly how long back, maybe 50 years ago, when credit cards were not the norm, instant gratification was not that much of a problem. However, with kids growing up in a time where parents swipe cards at their every insistence, instant gratification is ensconced in the child’s behavior early on. And this can become the single most important factor in deciding which way their personal finances go.
The author starts by putting you, the reader, in a frame of mind where talking about money to your kids is not a problem or a challenge. She asks you to communicate things as they are, but in a way that the kids of that age would understand. You might not be in a position to buy the bike that every other kid in the street is riding. Rather than simply saying to your child that you cannot afford it right now, explain why it is not the right time and how spending money on that would eat into other important things. Kids can understand finances a lot better than you think.
Giving it straight to kids doesn’t mean that you should bare it all. The author points out why it is a good idea to keep kids out of financial troubles and never discuss how each one earns. Similarly, it is equally important to not divulge how much you have in savings. Telling a kid that you have a million dollars in retirement savings will likely harm them more than help.
Saving and investments is an important part of financial life that ensures that you can love the same life after retirement that you have been living when you were working. Author shares various tips and tricks that you can use to teach your kid the habits of saving money and being patient.
Make Your Kid a Money Genius is full of stories and examples that explain basic things like Opportunity Cost that you can use as they are. You don’t need to invent a story to narrate to you kids for every difficult financial concept or explain them how saving today can be beneficial tomorrow and help them in many ways.
Other Reviews of Make Your Kid a Money Genius
“With practical prescriptions, simple but effective action steps, and instructive anecdotes, Kobliner has written a book that belongs on every parent’s shelf.” ~ Publisher’s Weekly
Interview with Beth Kobliner
Beth Kobliner talks to Fox Business about the book and how you can communicate financial facts with your kids.