“I wrote this review while participating in a campaign by Mom Central Consulting on behalf of American Express and received a promotional item to thank me for taking the time to participate.”
Talking with your kids about money is tough. Not as tough as having "THE" talk, but it's pretty difficult. Especially if you aren't the best role model. Maybe you were never taught how to spend correctly, or save, or be thrifty. Maybe you like to spend, but you don't want your child to be faced with a mountain load of credit card debt. Have you explained how credit is built? How, exactly, will you teach your child to "do as I say" and not necessarily, "do as I do"?
My older two kids have debit cards, and that's been a great way to help them learn to handle their money, while at the same time having the appearance of a credit card. Plus, it negates the "I've got cash in my pocket so I'm RICH, let's go SPEND!" syndrome that is so common.
I speak from experience. I frequently send kids to school to buy a $2.75 lunch with change, just because I never keep money around. If it's here, it's spent.
American Express has come up with a new initiative, aimed to help kids learn financial responsibility. After all, more than half of parents (57%) with kids in high school and college give schools below average or failing grades in teaching kids responsible spending, with more than one-third (35%) giving a straight out ‘F’. This is compared to 37% of parents who give schools an ‘A’ or ‘B’ for teaching safe sex, according to a recent American Express Survey. (source: American Express promotional material)
I'm not sure that I expect my kids to learn financial responsiblity at school. I'm thinking it would be better off to be taught at home, but I think I'm in the minority. Certainly it's a lofty goal - maybe you don't know what to say. In that case, visit the Practice Safe Spending tips link.
I'm really interested to know how you have handled this in your house. Has it been discussed, or is it a case of let the kids observe, process and then correct as necessary?