SUSIE GHARIB: When it comes to teaching your kids about money, how about making it a family affair? With tonight`s “Kids and Cash,” here`s Elaine King. She`s author of “Family and Money Matters.”
ELAINE KING, AUTHOR, “FAMILY & MONEY MATTERS”: Three out of every four parents give a form of allowance to their children, but only half require them to save a portion or give them guidance on what to do. On average, children watch about 3.5 hours of TV a day, which equals thousands of commercials begging them to spend that money, rather than save it.
Statistics show that with a goal or plan in mind, individuals can double their allowance and gift money. Highly successful families use the following five disciplines to put themselves on strong financial footing.
- Number one, families have a common goal and each member takes responsibility for a task.
- Next, families explain the value of delayed gratification and fixed versus variable expenses.
- Number three, families empower each member with a portion of the family`s budget goal.
- Next, families understand the power of compounding with savings and with debt.
- And finally, families lead by example and compensate on good behavior.
Remember, to evolve, you must know the tools to succeed. Giving your family the skills to make their own choices in life and money will allow them to reach their dreams.
I`m Elaine King.