Mother's Day Tips for Teaching Your Kids About Money

Carrie Schwab-Pomerantz on

-- Decide together what your kids will be responsible for paying for -- whether something essential like school lunches or extras like a movie with friends. It will be up to them to make sure they have the money when they need it.

-- Let kids plan a trip or night out. Give them a budget, something like $1,000 for a family vacation or $75 for a special dinner. Have them research and estimate expenses. Help them be creative and make trade-offs to stay within budget.

Teens want freedom and independence but they don't always equate that with being financially responsible. If you started their money lessons early, hopefully they've already established some good habits. Now is the time to prepare them for the upcoming transition to the real world of saving, budgeting, credit--even investing. Use this list as a starting point:

-- Savings: Help working teens set up direct deposit to put part of every paycheck into a savings account.

-- Budgeting: Whether with an online tracker or on paper, have your teens record every purchase they make for a week or two. Then take it a step further by having them complete a monthly budget planner to really see where their money is going.

-- Credit management: Once you explain the pluses and minuses of credit cards, give your older teen some hands-on experience.


-- Investing: There's a lot to talk about here, but experience is the best teacher. Once you've introduced some basic concepts about long-term investing, risk, and not betting everything on a single stock, here are a couple of ways to make it real:

No matter your kids' age, setting a good example is probably the most important thing you can do. If you're open about your own financial challenges and make money conversations a part of everyday life, your kids will be more comfortable and confident when dealing with money. And the lessons won't stop when they're off on their own. Your good example will continue on, and chances are they'll be coming back to discuss their own money issues with you -- as well as other of life's challenges -- knowing they can rely on Mom's good counsel.


Carrie Schwab-Pomerantz, CERTIFIED FINANCIAL PLANNER(tm), is president of Charles Schwab Foundation and author of The Charles Schwab Guide to Finances After Fifty, available in bookstores nationwide. Read more at You can e-mail Carrie at The Charles Schwab Foundation is a 501(c)(3) nonprofit, private foundation that is not part of Charles Schwab & Co., Inc., or its parent company, The Charles Schwab Corporation. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. Investing involves risk, including loss of principal. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers are obtained from what are considered reliable sources. However, their accuracy, completeness or reliability cannot be guaranteed. To find out more about Carrie Schwab-Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at

Copyright 2021 Creators Syndicate, Inc.



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