It’s the time of year, with holiday bills still coming in, taxes not far ahead, not to mention the market going down like a deflating party balloon, that money is on the minds of us grownups more than we’d like.
But how about our kids? Do they have a grasp on the concept of cash flow? Janet Bodnar’s much hailed Raising Money Smart Kids: What They Need to Know about Money and How to Tell Them (Kiplinger’s Personal Finance) takes on those money matters–the thorny issues of teaching kids to respect, spend, save, and ultimately earn money sensibly. Bodnar, who writes Kiplinger’s “Money Smart Kids” column, begins with a tough test for parents, “Test Your Money Smarts.” Here’s a sample:
Your 14-year-old son has been saving half of his allowance and mony earned from neighborhood jobs. Now he wants to use the money to buy an expensive iPod.