How Parents Can Begin to be Financial Mentors to their Children

Earlier I raised the question of whether parents should be provided formal training in mentoring and guiding their children's financial literacy.  My answer was, Yes.  Parents need and deserve education to help their children in knowing how best to spend money, how to save and invest, and the importance of also using money for charitable and humanitarian purposes.

Now, how can this begin to be accomplished and how early should the mentoring start?

First of all, parents need a framework in which to think about these issues, some guidelines to share with their children, and some tools to use in educating their children early in life.

A framework that has been suggested in the new field of financial literacy for children to help children build wealth and control their finances is called

The 10/10/10/70 Concept.  This concept orients parents to teach their children to use every dollar they are given and earn as follows:

GIVE - 10% to the charity of their choice

INVEST - 10% to build their fortunes

SAVE - 10% for the future, and

SPEND - 70% for everyday expenses.

Parents can begin employing this framework early in life by using such practical educational tools as the Money Mama Piggy Bank and the Money Mama and the Three Pigs Book and CD.

The Money Mama Piggy Bank is constructed in such a way that there are four slots over different seized parts of this unique bank each with their own compartment.  This construction helps make the 10/10/10/70% ratio vividly apparent and easier to grasp.

Click here to see the bank.

The beautifully illustrated Money Mama and the Three Pigs Book and CD, which is narrated by children, teaches young children the importance of saving, investing, giving and making wise decisions about spending money. 

Learn about this book and CD by clicking here.

These are only some of the tools that are now available to parents for helping them teach their children to be financially literate.  All make great gifts!

Other similar tools will be presented later.

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