Guest columnist: Kids' best money lessons come from home

April is Financial Literacy Month, and many people would admit that they could know more about their finances and investments.
But while it's important to learn as much as you can about finance at any time in your life, the best lessons are those that are learned early. Financial literacy should start with children.
While teachers and volunteers can do their parts to ensure children of all ages understand money and the important part it plays in their lives, the best place for them to learn about money is at home.
A survey last year by the financial literacy site themint.org found that seven of 10 children younger than age 17 saw their parents as their main influence when it came to money - proof that lessons learned in the home are those that stick.

It's values, not math

So how can you teach children to be more financially savvy?
It might be tough when you yourself are struggling to manage your own money and to understand the baffling facts and statistics that are part of money management.
The key is to view financial literacy not as a math lesson, but rather as a means of being responsible with money.
Money, and whether you have enough or too little, is the driving force of many decisions we make throughout our lives. The goal is to ensure your children will be able to make their financial decisions based on good values rather than math - a habit that will stand them in good stead all their lives.

Teach money morality

Bearing this in mind, it's good to teach kids that there is no such thing as having too much money, but one can have too little character.
When you teach money skills through a foundation of morals and values, children learn to enjoy the satisfaction of taking responsibility for the choices they make. Discuss charity; ask them to be generous to those less fortunate. Manage money well, no matter how much you have, and your children will learn the importance of earning and saving money.
Teaching good financial lessons in the home involves helping kids learn to set reasonable expectations.
The old adage really is true: Money does not grow on trees. Teach a child that simply asking for something does not necessarily mean he will get it. Help kids understand that money is earned, not simply acquired. Whatever they want in life will not be given to them; they will have to go out and earn it.

Set realistic goals

Teach children to set goals. Efficient financial planning, whether you're 7 or 70, starts with goals and a vision of what you want and when you want it.
One way to help kids set goals is to have them create a wish list; sometimes this process of writing a list can help them clarify what they want and also learn to set priorities. In tough economic times, some parents have to scale back on buying things that they once could afford.
Kids need to understand this, and teaching kids how to scale back is a good thing too.
To help kids set goals and manage money, give them an allowance. This should not be a paycheck for getting good grades or doing chores; set the expectation for their doing those things without additional reward.
The allowance is to help them learn to handle money by letting them conduct their own transactions.
For example, when a child wants popcorn at the movie, explain that he needs to place his order, calculate in his head how much change he will get back, and understand that this purchase will leave less money for him to make future purchases.

Be a role model

Be a positive role model by handling your own money transactions in a good way. And, remember, actions speak louder than words.
If you want to teach a child to set realistic goals with his money, you have to do the same. And if you want a child to manage his money by assessing what's really important to him, you, too, have to ensure you are putting what's important first, whether that's making sure your life is more financially secure or being able to truthfully say you are planning for long-term happiness, rather than short-term gain.
If you can teach your children what's important in life, through lessons and examples, they will be better equipped to save money, to spend prudently and to plan accordingly in their lives.
Source http://www.desmoinesregister.com/