How to educate your child about money

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Transcription:

Teaching the child the value of money is a very important life skill. It's starts when the child is young enough to understand about money which is generally about 7 or 8 and they get an allowance. An allowance should be given in three parts. There's a part that the child can spend immediately. There's a part that you want the child to put in savings so they understand saving and delaying gratification and there's a part that I want the child to give to charity. Giving a gift card that has a limited amount of money and then letting a child go to the store and having to purchase something within the confine of a gift card is another very good technique for a younger child. As a child gets older, in high school, I like a child a clothing allowance so they learn how to budget a fixed amount of money. At that point, they can learn to have a checking account. They can begin to learn little investing. What you really want to do is prepare the child when they go out into the world to understand that money has limitations and needs to be managed responsibly.

Video Categories: ELEMENTARY, Responsibilities, Money Management for Kids, Allowance, TEEN, Responsibilities, Money Management

Lee Hausner, PhD Psychologist & Wealth Advisor, shares advice for parents on the best way to teach your kids about the value of money and financial responsibility

Transcript

Expert Bio

Lee Hausner, PhD

Clinical Psychologist & Author

Dr. Lee Hausner is an internationally recognized clinical psychologist, business consultant and family wealth advisor. She served as the senior psychologist for the Beverly Hills Unified School District for 19 years. She is currently the Senior Managing Director for First Foundation Advisors. An acknowledged expert on psychological issues involving wealth and wealth transfer, she was a presenter at the World Economic Forum in Davos-Klosters, Switzerland, and is a frequent participant at the high wealth/private client conferences for major financial institutions. She is a frequent guest on national radio and television and a quoted expert in national publications such as The Wall Street Journal, Times, Forbes, Fortune, Privilege, Town and Country and Worth Magazine.

Dr. Hausner is the co-author with Doug Freeman of A Founder's Guide to the Family Foundation, published by the Council on Foundations and is the author of the seminal work regarding wealth and the family; Children of Paradise: Successful Parenting for Prosperous Families. In addition, Dr. Hausner incorporated her unique six-step transition model for succession in family business in the critically acclaimed family business resource book Hats Off to You 2: Balancing Roles and Creating Success in Family Business, of which she was a co-author.

Dr. Hausner is a graduate of Northwestern University (BA, Psychology), San Francisco State University (MA, Psychology), and Kensington University (PhD, Psychology).

Parenting expert on: Building Self-Esteem, Money Management for Kids, Allowance, Money Management

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