On his 4th birthday, Justin Fleer of Maryville, Tenn., was tickled to get "four green rectangles," $1 bills from an aunt. A $20 bill from Grandma, he learned from his older brothers, was even better.
His parents are teaching the preschooler another lesson: Some of his birthday and Christmas bounty will be saved.
Teaching about money early on pays off in the long run, according to financial education experts.
"We teach children to read, write, learn music and play sports, but we expect them to absorb the skills to save and invest proficiently," says J.M. Seymour, who promotes financial education as "The Money Godmother." Her wish for parents: Help kids be money savvy now, so they can be successful later.
Seymour, author of "Stock Market Pie: Grandma Helps Emily Make a Million," (DynaMinds Publishing, 2002), says kids have the false notion that parents have an endless supply of money. To help solve that problem, look for teachable moments. While shopping, for example, talk about coupons and how to find deals.
Starting the savings habit while your kids are young will help them throughout their lives, according to the Cash Management Connection, a program based in Chapel Hill, N.C., publisher of cash management workbooks for children, teens, college students and adults (www.kidscashmanagement.com).
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