How to Raise Kids Who Actually Understand Money
There are parenting books you should read but can't because you're too busy parenting, and then there are  pretty much no other kind. So, use our Crib Notes to make sure you always sound like you know what you're talking about. Next up, The Opposite of Spoiled Raising Kids Who Are Grounded, Generous, And Smart About Money, from New York Times money columnist Ron Lieber. The book explores ways to think and talk about money with children, and offers some best practices for bringing up kids who are financially savvy without being entitled or avaricious. Sign up here for TIME for Parents, a weekly roundup of the most interesting parenting stories. 1. Start talking to your kids about money early and often, An understanding of money is no longer optional  Your kid will likely grow up in a world where college loans are massive, health insurance is self-provided and retirement savings are ill-defined. At the same time, social media will amplify wealth disparities amongst them and their peers, so they're at risk of developing animosity or self-esteem issues. On the plus side, there might be hover boards. Traditional objections to discussing finances with kids are misguided  Talking to your kids about family finances won't steer them toward greed. To the contrary, money is a great tool to encourage positive traits like curiosity, patience, thrift, modesty, generosity, perseverance and perspective. And, no, that doesn't mean you should just spend a bunch of it on a life coach for your kids. 2. Yes, you should give your kid an allowance No, it shouldn't be in exchange for chores, Allowances are about teaching kids how to save and spend  A work ethic is something kids should learn outside the home, in school or at a part-time job. Chores are how they gain an understanding of the family unit and the role they play in maintaining it since Mommy will leave both of you if those Legos don't get cleaned up. 3. Both spending and giving present opportunities to teach money smarts, Set spending guidelines and model sensible tactics  Your kids are unmolded lumps of clay in their understanding of how money really works, so go beyond simple rules that dictate "what" and provide explanations of "why" you do the things you do with your money, from a practical standpoint but also a values standpoint. 4. Put the kid to work, Little kids like to have jobs to do  Encourage their innate industriousness before they get old enough to realize that work is work. You might change the trajectory of their lives or you might just get a few more months of room cleaning out of them. Employment looks good on a resume  There's a strong correlation between teenagers with part-time jobs and good GPAs and college expectations. Furthermore, college admissions officers are often as impressed by evidence of a work ethic as they are with academic or athletic accolades. 5. Don't let your kids be ungrateful, Foster an understanding of different circumstances  Even if your kids want for nothing, it's important that they're exposed to other situations.