Teaching Kids about Money

Most Americans don’t have a rainy day fund and haven’t saved enough for retirement. How can we prevent future generations from making the same mistakes? Teach kids about money.

The biggest money mistake parents can make is not talking about it with their kids, says Karyn Hodgens, a mother, co-founder of Kidnexions, a website for children’s personal finance in Rocklin, Calif., and author of "Raised for Richness: Teaching Kids Money Skills for Life." "It’s one of the most important things to teach our kids, so that they can become self-sufficient, responsible, and productive later on." Parents don’t have to be financial experts to teach the basics: the importance of saving, budgeting and goal setting. Nor should parents ever forget that their actions, regarding money and everything else, serve as constant examples for their offspring.

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