Monday, September 10, 2012

The MoneySmart Family system by Steve & Annette Economides

This book gives an overview of the Economides’ method of teaching financial independence to children.  They give a detailed explanation of the budgeting system they taught their kids, as well as many helpful ideas and methods in specific situations and stages of life.  They really push home the “5/500/5,000/50,000” rule.  By that, they mean that if you teach a kid a good financial principle when they are young, it will cost you $5.  If you wait till they are a little older, it will cost you $500.  If you wait longer yet, $5,000, and if you wait until they are an adult, it will cost you $50,000. 

Overall, I thoroughly enjoyed the book.  It stimulated me to get excited about thinking of ways to teach financial principles to my kids.  I enjoyed taking their ideas and thinking of other fun things to do.  I agreed with almost everything they said, though I would have enjoyed if they would have brought out more Biblical principles about money to share.  It had a pretty secular feel to it, though they did mention church and giving money.  I especially liked the idea of giving children “raises” as they get older, because more is required of them.  I would recommend this book to all parents and hope to be parents to start thinking about making preparations to teach financial independence, even if you go about it a whole different way than what was presented.
