Breaking News
More () »

Teaching kids about finances | Money Smart

Author J.J Wenrich, CFP, thinks that financial literacy should be the foundation of every home.

YORK, Pa. — Money has historically been a taboo subject in many homes, and still continues to be in many others.

J.J Wenrich, CFP, however, thinks that financial literacy should be the foundation of every home. He's the author of "Teaching Kids to Buy Stocks: Stories and Lessons for Grown-Ups." He's worked in the investment world for more than 20 years and knows firsthand the impact of the lack of a formal financial education. This is why he believes learning about money has to start in the home.

"Even if you don't feel like you're equipped as a parent, maybe you're not sure you have it (finances) down, it's okay to learn next to the kids," he said. "What we're trying to do is keep it super simple so that it's not such an intimidating subject to talk about in the home.

Wenrich hopes to help parents learn the lessons they may have missed as kids and to pass on better financial habits to their children.

The first thing he suggests doing is making money talk a normal part of family conversations, so they don' t think it's a subject to shy away from.

"The sooner they're used to talking about these things, the better they'll be for themselves and the ones around them.

He says it's also a parent's responsibility to stress the importance of saving.

"Every time they (kids) get a dollar, they should be conditioned to not just go figure out how to spend more than that dollar, but to take a quarter, a dime and set it aside, and then spend the 75 cents," he said. "That's a life changing behavior."

Wenrich also says it's never too early to talk to kids about investing. He suggests checking out the app BusyKid, which teaches children the basics of money management. Parents can pay their kids for chores on the app, you can gift them money, and they even get a debit card. It also links to ways they can give to charities, and lets them invest small amounts in companies.

He says it's important to be wary of scams online, and to always be cautious with your money.

To hear more of what Wenrich had to say, check out the clip above.

Download the FOX43 app here.

Before You Leave, Check This Out