Last year when I was complaining about the cost of getting my car towed, my young son said, “Don’t worry! I can pay for it. I’ve got a cash register full of money!” I quizzically watched as he pulled out his Learning Resources toy register hidden under a pile of stuffed animals and old Lego pieces. Although we bought that toy for him in hopes of teaching him about the value of money and learning about interest through imaginary play, he had actually just assumed this was real money collecting dust in his bedroom. Epic fail.
Make Your Kid A Money Genius (Even If You’re Not), a new book by Beth Kobliner (author of New York Times Bestseller Get A Financial Life) is here to hold parents hands as they wade into uncharted conversations about cash with their kids. Beyond just receiving early entry to Stern Business School, financial talks can prevent spoiled behavior, build charitable leanings and set kids up for secure futures. Kobliner divides the book into chapters ranging from “Insurance”, “Giving Back” and “Saving for College” and further divides her chapters into age ranges. Talking to your preschooler about investing will look different than with your teenager, but from the start you can build some pretty strong scaffolding for the importance of financial security. (more…)