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When you teach your children the basics of
money management, they're less likely to
become financial burdens when they're older.
Try these exercises from Robert Kiyosaki,
author of Rich Dad, Poor Dad:
- Balance a checkbook- give
children a blank checkbook register and
create a stack of make-believe checks. Put
a monthly total in the register and have
them write you "checks" whenever
they need cash. "Agree that you will
audit the checkbook once a month," says
Kiyosaki.
- Control debt - Many credit card
companies will give a prepaid card to
teens under 18 if a parent funds the card
and is responsible for payments. If
you give kids a card, be sure they
know the amount you've deposited and that
they match receipts against monthly
statements before you pay the bill.
"Parents whose children get into
credit card trouble didn't review their
bills or hold them accountable,"
Kiyosaki says. "Sloppiness makes you
poor."
- Save three ways - Set up three
piggy banks or savings boxes- one for
long-term savings (for investing), one for
short-term savings (for purchases) and one
for charity. With three pools, teens learn
there are multiple ways to look at
savings.
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