web analytics
April 23, 2014 / 23 Nisan, 5774
At a Glance
Blogs
Sponsored Post
Spa 1.2 Combining Modern Living in Traditional Jerusalem

A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.



When Should You Teach Your Children About Money?

When your children are little, you can give them two small coins each day.
Goldstein 485x300

Share Button

As a financial planner, I’m often asked when people in general should start learning about good saving habits and how to plan for the future. My answer is “right from the very beginning.”

It’s vital to teach children the importance of a good work ethic and of being financially independent from a young age.

What you see is what you’ll get

The way that you perceive money is often learned from what you saw in your childhood. Therefore, if you’re constantly borrowing money or spending indiscriminately, chances are that your children will absorb the same habits. It’s no coincidence that in certain cities, some neighborhoods are populated by families who haven’t worked for a generation or two.

You can’t tell the future

Another reason to educate your children towards financial independence is that you never know what the future may bring. You might think that you will always be able to provide financial support for your married kids, but what happens if your investments take a nosedive or you need the money for unforeseen medical expenses?

Furthermore, as anyone who has supported adult children will tell you, money and family often don’t go together. Tensions surrounding money issues are the cause of many major rifts between the generations.

When do you start?

When your children are little, you can give them two small coins each day. Get them to put one inside a charity box and the other inside a piggybank for saving. Show them after a week or two how the money has piled up and they can buy themselves an inexpensive present. Show them how their charity can help other people.

As your kids get older, base an allowance on chores done around the house to instill the concept of working for money. If your children want a new toy or gadget, don’t just give it to them. Teach them how they’ll get the money for it by saving some of their allowance, doing a babysitting job, or mowing lawns,

Take your children to the store with you and show them how you choose products, how to work out when a special offer really does save you money and when it’s just a slick marketing ploy. Tell them that the money in the ATM doesn’t just appear at the touch of the button. It has to be paid into the bank first. Similarly, credit cards always have to be paid for, and when you write a check, you aren’t simply “inventing” money that isn’t there.

As your children grow older, they need to learn basic money and budgeting skills that, sadly, are not taught enough at school. Hopefully, they will carry these skills with them into the future and learn how to work for their money and save successfully.

The gifts of financial knowledge and independence are the greatest presents you can give to your children, and it’s never too early to start.

Share Button

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning firm located in Jerusalem. He specializes in working with clients in New York, Florida, and Israel and is a licensed financial professional both in the U.S. and Israel. Securities are offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Doug’s newest book The Expatriates’ Guide to Handling Money and Taxes is available at www.expatguidetomoney.com. He hosts a weekly finance show, Goldstein on Gelt, on internet radio. Listen live or download podcasts. Toll-free from U.S. 1-888-327-6179, Jerusalem: (02) 624-2788. Follow on Twitter: @DougGoldstein or contact at doug@profile-financial.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

No Responses to “When Should You Teach Your Children About Money?”

Comments are closed.

SocialTwist Tell-a-Friend

Douglas Goldstein
Current Top Story
Abbas and Hanieyh on poster, next to a picture of Arafat.
Kerry’s Talks Achieve Peace Between Hamas and Fatah
Latest Blogs Stories
The IDF is creating a global interactive Holocaust Survivor Commemoration.

The IDF will take everyone’s #WeAreHere stories and create an interactive, dynamic honor to the Shoah survivors.

A woman sits next to the grave of an Israeli fallen soldier on Har Herzl.

Peace, true peace, isn’t up to us. We’ve offered it on gilded platters forever. Nothing we do will bring peace to our Land.

Community Surveillance.jpg

The Justice Department allows the FBI to use demographic mapping, but the NYPD no longer can.

The Trophy System creates a protective dome which shields tanks from anti-tank missiles.

Check out the IDF’s most innovative weapons (at least the ones they can tell us about.)

When will the State of Israel decide the Palestinian Arabs are a hostile enemy and treat them as such?

Like Hamas, Hezbollah also builds tunnels. Those tunnels pose a serious danger to IDF border patrols.

Visa has ads in an Egyptian magazine in which a story describes Jews as vampires. And worse.

World Council of Churches expresses solidarity with “Palestinians” ‘languishing’ in Israeli prisons.

The Seder: We starve (during the sometimes endless recitations and discussions) and we feast.

The unique skills of people on the autistic spectrum adds great breadth to IDF intelligence work.

Passover is a road that we still travel, a long journey from slavery to freedom.

In Iran, 131 offenses are punishable by death, including blasphemy, adultery and homosexuality.

Women must eat Matzah on Pesach too but that is also a time bound positive commandment.

Pro-Israel leaders on campus are as important as the troops in the IDF and professional hasbaraniks.

The seder reminds us of our freedom now that we are home again in the land of the Nation of Israel

IDF helicopters are ready to act on a moment’s notice to defend the State of Israel.

More Articles from Doug Goldstein, CFP®
Doug Goldstein, CFP

Factors that you need to take into account when deciding whether to rent or buy a home.

Doug Goldstein, CFP

The president of the Cambridge Satchel Company talks about the exponential growth of her company.

He won the Nobel Prize for chemistry, now Dan Schechtman wants to be president of Israel.

gnite Social Media created social media programs for companies such as Microsoft, Nike and Disney.

Learn how to navigate the new business paradigms so customers can find and purchase your products.

Stable banking systems: by design or by default?

In the first part of this week’s podcast, Diane Coyle, professor of economics at Manchester University and author of GDP: A Brief But Affectionate History and The Economics of Enough, talks about measuring economic progress. What is the GDP (gross domestic product), and is it really an accurate benchmark for understanding economic performance? Find out […]

    Latest Poll

    Now that Kerry's "Peace Talks" are apparently over, are you...?







    View Results

    Loading ... Loading ...

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/when-should-you-teach-your-children-about-money/2013/06/05/

Scan this QR code to visit this page online: