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Video: Raising a child with financial smarts

Kristin Arnold

Most everyone has a money lesson or two they've learned throughout their life. Whether you did chores as a child, had to make good grades or start a savings account ... your parents probably tried to steer you in the right financial direction.

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Take VO: Want your kids to be money smart? Then you need to get them involved in all things financial at a young age ... and continue throughout their teenage years ... eventually transitioning them into adulthood.
1. Explain to your children why you work and what that money provides to them and the whole family. Their toys, clothes, food and home all come from your hard work.
2. Giving your kids a piggy bank to fill will help them understand the three lessons of giving, saving, and spending. They need to give their time, to gain their allowance if they want to buy something.
3. Get your kids involved in the family shopping. Have them make lists, check prices, cut coupons.
4. Develop a budget together that includes short and long-term goals. A long term goal could be a bike or a family vacation. They will quickly learn the value of every item and prioritize what they really want or need.

Take SOT: Greg McBride, Senior financial analyst
"Good financial habits begin at home. It's a topic that you can't avoid. You have to talk about it, and to the extent that parents are able display good habits for their children, that's certainly a big step in the right direction."

Continue VO: In fact, plenty of adults wished they had listened to their parent's advice or shown the financial ropes sooner, rather than later in life.

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Tag: Need to brush up on your financial smarts? All you need to do is visit Bankrate.com. I'm Kristin Arnold.

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