PHOENIX (3 On Your Side) – As adults set financial resolutions for the new year, financial experts say it is important to include kids in the conversation.
Money can sometimes feel like a big, intimidating subject, so keep the conversations simple, suggests Kim Kiyosaki, the cofounder and CEO of the Rich Dad Company. She says parents should also encourage kids to earn their own money through chores or a small business like a lemonade stand.
“Naturally, kids are going to want stuff, so there is a point where you start to ask them questions,” Kiyosaki said. “‘You want this toy. How are you earn money to buy this toy?’ And start them thinking differently. This way actually trains them to have more of an entrepreneurial mindset rather than just go to school, get a job. It’s teaching them to really think about how they can create money and really take control of their future life.”
Another strategy to teach kids about money is to make it a game. One option is a board game called Cashflow for Kids. Kiyosaki’s company released it several years ago, but recently updated it.
“They learn about income, expense, asset liability, cash flow. But make it simple, make it fun, and not make it a subject that parents only talk about when there’s a problem,” Kiyosaki said. “That’s what happens a lot of the time. We talk about money when we have trouble.”
Another way to engage children in the new year is to buy them a silver coin or share of stock in a company that makes a product they like. By tracking the ups and downs of the market with them, they will learn about investments in the real world, Kiyosaki suggested.