Monday, December 31, 2012

The MoneySmart Family System by Steve & Annette Economides

This book is a great tool for families with children of all ages!  The MoneySmart Family System by Steve & Annette Economides is chock-full of detailed, helpful information concerning teaching your children to manage their money.  And the teaching doesn't just start when their children are in the their teens.  It starts when they are young and, as they get older, there is added responsibility and compensation to go along with their added maturity.  The eventual goal is to raise their children to be adults who are independent and also responsible with their finances instead of being irresponsible and take on a bunch of debt like many young adults nowadays.  Their children have the knowledge and the skills to be successful financially.

One thing I liked about the book and the MoneySmart system they use is that it is family oriented.  The parents contribute financially to each child based on their age and then use that money to teach the children to save, spend, and give.  This isn't just an allowance.  It's used as compensation for doing their daily chores, doing their schoolwork well, and also completing their morning routines.  Each child can get points for completing all the tasks in a certain area, but those points are only awarded once a parent has double-checked to make sure the chores were done properly.  Both parents and children keep track of daily points on a chart and at the end of the week the child receives his or her "paycheck".  Each child has receives a certain amount of pay per point received.  In the book, the authors even share with you different pay scales for each age group which is very helpful.  They have also outlined different ways to show your children how to spend, save, and, give instead of spending all their money the instant they get it.  

Another thing I liked about the book is how they slowly transfer some financial responsibility as the child gets older.  He or she receives a higher rate of pay per point earned, however they may also be responsible for purchasing their own clothing.  Since they authors are also known as "America's Cheapest Family", they of course show their children how to find clothing at discount prices so they can make their dollars stretch a bit farther than just blowing their whole paycheck on an over-priced, new, name-brand item.

There is so much more information in the book than what I've discussed in this review!  As a parent to 3 children who think money grows on trees, I'm excited to put these principles into practice!  

*I received a complimentary copy of this book from Booksneeze in exchange for this honest review.   

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