We often suggest to our inquiring parents that they pay their kids to read some of those great financial books out there. (Yes, pay!) Pay your kids $25 to read Rich Dad, Poor Dad; paying AFTER they give you a book report on each chapter and have a meaningful conversation with you about what they read and how they can apply the information to their own life. Also, begin to instill in your kids the Pay Yourself First habit by requiring that at least 10% of that $25 is put away for their future. This technique is just one more way to get that all-important financial education into their systems (and may be one of the best investments in your kids you ever make!).

One of our parents recently wrote to me, wondering whether or not her child would retain the information. My response:

“Think back to your own education and the books that made a difference. What information gave you the building blocks for what you know today? What inspired your curiosity to know more? What information did you get early on that had you feel less “stupid” in conversations that you may have otherwise stopped participating in?

This is what we are going for when we suggest that you get your kids reading about money. It is unlikely they will “get it” right away but we want you to give them a knowledge base upon which to grow and learn and “get it” as they go. And the earlier, the better – less chance they will develop their money habits by default or out of ignorance!

Just try it and see how it goes!”