Raising Money Smart Kids!

Disney Teaches Kids About Money!

The Epcot theme park in Orlando Florida opened up an exhibit with interactive games aimed at teaching kids ages 8-13 basic lessons in money! Saving, investing, goals and inflation. If you cant make it to Florida they have an online game you can play. Piggy Bank Adventure  It takes place in a small town called fiscalville... It's great, I love anything that teaches kids about money! The project was sponsored by T. Rowe Price and has been in the works since 2006. I must say the time could not be better ;)

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Interactive Website that Teaches Kids About Money

I just reviewed ING DIRECT’s new kids' website called Planet Orange. It is awesome -- and every kid and parent should check it out. I signed up and went through it as a kid would, and as you probably know, I am still a kid at heart. I also have the attention span of a nat! So if something can keep my attention, then it has a great chance at keeping a kid's attention.

The site is fun, educational, and has the right amount of play and learning mixed together. The kids can design their outfits, skin and hair color and pick out really cool accessories. There's a twist of course, because the outfits aren’t free, and they have to be purchased with Obux (Planet Orange's currency). Kids learn how to budget and are rewarded for finishing certain tasks and lessons.

You go on a mission through the concepts of earning, investing, saving and spending wisely. None of the lessons are too long or wordy. The characters, props, and towns are fun, colorful and engaging. At the end of each adventure there is a fun and quick quiz to review -- the repetition is great for reinforcing the concepts.

You can also purchase games with the Obux you earn. My son came home while I was playing “The Great Orange Escape,” and his first response was, “Wow mom, let me show you how it’s done.” He must have played it for 10 minutes straight, which is amazing considering he has my attention span.

I rate this website a 10: it gives the kids the most important lessons in money, without too much wording, reading or work.

This website is designed for 1st through 6th graders, that range is the most important time to teach kids about money. Don’t get me wrong -- it's never too late to teach anyone, including adults, about money. I didn’t even realize I had a problem until my late 30s. The sooner you create good habits, the fewer bad habits you will have to break later in life.

Kindergarten through 6th grade is all about creating foundations for kids, as they learn the three Rs, build character and create their life long habits. This age group has the most amount of parent participation in school, kids usually have one teacher for the day, and if kids start at this age learning how to save and invest their money their financial futures will be set. Imagine where you would be right now if you became educated in money and started saving and investing at a young age?

Times have changed, and in the last year they have changed drastically throughout the world. So we have to become proactive in teaching one of the most important life lessons of all: money. Breaking the cycle of financially illiteracy, starting with our kids, will be the best defense we have in protecting our own financial futures and our children’s as well.

Interview with Bob McCormick KNX 1070 Money 101

Through the month of April Kijiji.com & Prosperity4Kids, teamed up to spread the word about kids and money, we ended up doing interviews from L.A. to Chicago and everywhere in between. Listen to our latest interview on Kids and Money with Bob McCormick from KNX 1070 Money 101.

Download KNX Radio - Lori Mackey - Smart Spending 5-1.4.09

Download KNX Radio - Lori Mackey - Money Lessons 5.5.09

Kijiji is a free local family-friendly classified site that has just about everything, but personals! Kijiji found that the average household has over $600.00 of unused items. Now is a great time for some spring cleaning and teaching your kids how to earn some extra income! Help your kids identify items around the house and then take digital pictures of each item and upload them to the site. This is a perfect way for kids to see that there are other ways of earning money. If these items do not sell then you can donate them to a local shelter or charity.

Visit www.Kijiji.com and find a local site near you.

The Smarter Way to Pay an Allowance, When, Why? & How Much!

Allowance is one of the best tools for teaching your child the value of money. It can create good habits, break bad habits and change behavior. Don’t think of allowance as “Paying Your Kids” -- think of allowance as a tool for teaching financial literacy and an introduction to the wonderful world of money.

Children can start earning an allowance as soon as they know money gets them what they want. This depends on the personality of your child -- if at age 2 he wants anything and everything in sight, then it's time for some money lessons. If your child has little or no interest in wanting everything they see, then they are not quite ready for the fundamentals of allowance.

The amount you pay a child depends on the family income, not age or ranking. Think back to all of the things you bought your child in the last month that was not a necessity. Add up things like candy, videos, toys, CDs, trinkets and other extras. This will be the amount you should allow your child to earn throughout the month. It won't cost you any more money and may even save you some money in the long run.

Next, sit with your child and explain that they are going to start earning an allowance for certain chores, and from now on they are going to use their own earned income to buy the items that you used to buy for them. 

Allow your kids to earn money for anything that they are not doing right now! If your child is not making their bed, brushing their teeth, or cleaning their room, start with that. Experts say it takes 21 days to create a habit. Once your child gets in the habit of doing those chores automatically, you can stop paying for the previous chores and move on to other things like cleaning the bathroom, laundry, etc.

The next time you are going out into the market place, remind your child to bring their money. Now they will purchase the items you used to buy for them. You will probably find that your child will make better choices with their money versus your money and will probably think twice before letting go of their cash. If they find something they want, encourage them to do some research to find the best price. I always have my children visit Kijiji.com, which is a free, family-friendly, classified website. Your child will start to see that sites like these are full of items they might want, but they will also see this as another way to earn money by selling items that they have no use for anymore.

You can help your child understand that there are several ways to earn money besides allowance and open their eyes to the wonderful world of money. To receive our free guide on The Smarter Way to Pay an Allowance visit Prosperity4Kids.com.