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CUE 2011, Palm Springs, March 18, 2011 Prakash L Dheeriya, PhD, Professor of Prakash L Dheeriya, PhD, Professor of Finance Finance California State University Dominguez California State University Dominguez Hills Hills [email protected]

How to teach children about money

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How to teach children about money. CUE 2011, Palm Springs, March 18, 2011 Prakash L Dheeriya , PhD, Professor of Finance California State University Dominguez Hills [email protected]. FINANCE4KIDZ.COM. Introduction - PowerPoint PPT Presentation

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Page 1: How to teach children about money

CUE 2011, Palm Springs, March 18, 2011Prakash L Dheeriya, PhD, Professor of FinancePrakash L Dheeriya, PhD, Professor of Finance

California State University Dominguez HillsCalifornia State University Dominguez [email protected]

Page 2: How to teach children about money

FINANCE4KIDZ.COM

IntroductionMillard Public School Model of teaching children

about finance at elementary schoolsHow you can teach your children about finance(a) Wants & Needs (b) Choices (Decision making)(c) Where does money come from (d) Risk &

Return(e) Managing MoneyHow to get these books (

www.finance4kidz.com Library purchase, Amazon & ibookstore )

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FINANCE4KIDZ.COM

Prakash L Dheeriya, PhD in financeFather of 2 boys, ages 6 & 7 yearsProfessor of Finance at California State

University –Dominguez Hills with over 25 years’ of teaching exper.

My philosophy: If you can teach your children not to put fingers in electrical sockets, or to look both ways before crossing a street, then you can teach them about finance too

How come we teach children to take care of their physical health, but never teach them about their financial health?

Page 4: How to teach children about money

FINANCE4KIDZ.COM

Millard Public School district (NE) is rated # 6 in the nation.

College faculty teach high school seniors about finance using Finance For Kidz series of children’s books

Those high school kids then go and teach elementary school kids from these books

Here is the feedback received from a high school student who took this course

Page 5: How to teach children about money

FINANCE4KIDZ.COM

"Today was our last day with the Cottonwood Elementary students and we will most likely never see them again. While I am sad, it gives me great pride knowing our efforts the past 8 weeks will help them appreciate the important role of finance in their young lives. We know the students enjoyed the experience with us for the short time we shared with them and somehow my sadness with the end of this class is offset by the satisfaction of watching the progress made of what started as little finance caterpillars turn into butterflies."

I don't know about you but to me its reading these

comments which is the essence of why I chose a career in education.

Page 6: How to teach children about money

FINANCE4KIDZ.COM

Wants & Needs

Need is something you must have in order to survive

Want is something that is nice to have but not essential for survival

Teach them the difference and they won’t bug you “I want this, I want this..” Empower them by letting them decide on their own if they “want” something or “need” something

Do you “want” candy or do you “need” candy?

Page 7: How to teach children about money

FINANCE4KIDZ.COM

Choices (Decision Making)

Understand that there are “costs” and “benefits” associated with decisions

To teach children: Costs are something that is not good and benefits are something that they like

For birthday parties: Do you want a lego party or a star wars party or princess party?

What to eat? Apple or candy? Explain costs-benefits“Good thing about it..” “Bad thing about it is…”

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FINANCE4KIDZ.COM

Where does money come from?

Explain swapping, or barteringChild needs legos or some toy; has excess of

some other toy & is willing to swapIs he willing to swap (exchange) or barter?If so, explain the difficulty of barteringTherefore, we need a universally accepted modeMoney is a medium of exchange

Page 9: How to teach children about money

FINANCE4KIDZ.COM

Where does money come from?

Explain swapping, or barteringChild needs legos or some toy; has excess of

some other toy & is willing to swapIs he willing to swap (exchange) or barter?If so, explain the difficulty of barteringTherefore, we need a universally accepted modeMoney is a medium of exchange

Page 10: How to teach children about money

FINANCE4KIDZ.COM

RISK & RETURNVery important concept not taught until collegeTo make lots of money, you must be willing to

take riskFor teaching children: Use basketball, or soccer

ball & Shoot, …take chances..You may score points or a goal..not

guaranteed..No such thing as risk free way of making tons

of money

Page 11: How to teach children about money

FINANCE4KIDZ.COM

Managing Money

Show them a glass pitcher of water

Money is the water and the glass is your bank account

Always keep some water because you will get thirsty

Page 12: How to teach children about money

FINANCE4KIDZ.COM

How to Obtain these

Books?www.FINANCE4KIDZ.CO

MAsk your librarian- Can orderAmazonIpads (ibookstore)Translated into Spanish, Arabic, Chinese,

French, (Portuguese and Japanese soon)

Page 13: How to teach children about money

Why Do We Need To Teach our Children about Money?

Page 14: How to teach children about money

FINANCE4KIDZ.COM

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