New York, NY [September 5, 2012] – There’s no arguing that having a good grasp of how to handle money is one of the most important life skills a parent can help foster in their child. According to the National Financial Educators Council, over 92 percent of parents agree that developing good habits around money is an important element to having a successful life.[i]

However, parents struggle with imparting strong financial know-how to their kids. In a recent survey conducted by T. Rowe Price, 39 percent of adults disagreed when asked if their parents did a good job educating them about money and 59 percent felt their own kids were not equipped to manage their own money. [ii] How can parents give kids a head start in developing the right childhood money habits so they become successful adults?

Here are some tips from personal finance expert, dad, blogger, philanthropist and successful entrepreneur Doug Lebda to help support adults and kids of all ages in the mission to build a money smart world: 

1.       Change “I want!” to “How do I earn?”: Parenting is tough but it gets way tougher when kids don’t get what they want. Instead of saying no or yes during the next demand-driven fit, try diverting your child to think about what they can do to earn the things they want so they start developing a strong work ethic.

2.       See like a bird but save like a squirrel: Encourage kids to take a bird’s eye view of the money they have coming in like allowance, reward for tasks accomplished or birthday gifts. Then discuss the portions of any income they will put towards saving, giving and spending. This helps your kids develop healthy patterns and plans around money that they can carry with them as they get older.

3.       Be consistent about expectations and rewards: Make sure your kids know what they’re expected to do before they get their allowance. Be consistent in rewarding a job well done as well as withholding rewards if they don’t fulfill their responsibilities. 

4.       It takes a village, so get it involved: Inform extended family and friends about your mission and get them involved! Work together to teach and encourage your kids to save and get rewarded for achieving milestones. Consider having family matching their savings for birthdays or treat kids to non-cash rewards like a special family outing for good financial planning.

5.       Make learning fun: Make it a fun family project to teach your kids how to make money by starting a lemonade stand. Turn saving money into a game by celebrating and rewarding kids for meeting savings goals. Lastly, don’t forget the Internet! 85 percent of kids say that an online game would be helpful for them to learn more about the basics of money. [iii] With today’s digitally savvy kids, it’s important to meet kids where they are already. Apps like Tykoon.com help parents use the powers of virtual gaming for good and streamline the workflow of instilling healthy financial habits early.

Doug Lebda is the cofounder of Tykoon.com and founder and chairman of Lending Tree and the LendingTree Foundation, which empowers individuals in their personal financial lives through education, action and support by matching clients with personal financial coaches. He’s the Chairman of the Board of Recyclebank (recently named one of the 50 most innovative companies in the world) and is an active mentor, angel investor and personal finance blogger for The Huffington Post. In his free time, he enjoys time with his three daughters, is an avid runner and enjoys an occasional round of golf.

Tykoon (www.tykoon.com) is an online rewardbank for kids and parenting tool (Web & iOS) that makes it easy to apply all the tips above. It turns chores and parent-assigned tasks into an engaging virtual experience that helps kids learn about money by playing. Kids play by completing tasks to earn both virtual and real-life rewards.

About Tykoon

Based in New York City and founded in 2011, Tykoon is a fun online kid rewardbank and parenting tool (Web & iOS). It turns chores and tasks into an engaging virtual experience that helps kids learn about money through real life experiences.  Kids engage by completing tasks to earn both virtual and real-life rewards, developing strong financial values and practices. Built for parents and kids by parents and kids, the platform introduces the core concepts of earning, saving, giving and spending so families can build a money smart world, one kid at a time. For more information, please visit www.tykoon.com.

The post TIPS FOR PARENTS ON HOW TO FOSTER GOOD MONEY HABITS IN KIDS appeared first on AKAMom Magazine.