Breaking News
More () »

Greensboro's Leading Local News: Weather, Traffic, Sports and more | Greensboro, North Carolina | WFMYNEWS2.com

Teaching kids about money: A family gives stimulus money to kids, tells them to spend it wisely.

How do you talk to your kids about money? Bob Hudson from Northwestern Mutual says it's great dinner table discussion!

GREENSBORO, N.C. — When it comes to your stimulus money, would you hand it over to your kid and tell them to spend it wisely? One family did just that with one simple rule, shop local. Whatever they bought, the money couldn’t be  used for anything on Amazon or at Walmart.

Meet the Feder family. Nicklus and Lane got to decide how to spend the stimulus money. Each one got $300.

"We try to go to local businesses in general. John and I have done that for years by trying to go to cool restaurants when we go out to eat or go to do things. So, they actually choose a lot of our favorites that we tend to go to,” said Jamie Fedder, Nicklus and Lane’s mom.

How do you teach kids about money?    

Do they need to know about house bills or do you just talk to them about money when they ask for things like clothes or a toy? The expert 2WTK talked with from Northwestern Mutual says it comes down to
teaching money equals the opportunity to make choices.

“Maybe it's the budget that they all feel value for example if the child wants to decorate their bedroom or the new car the family would like to get, or that vacation. Publicizing that goal and the steps taken on a monthly basis to know they can go on the vacation,” said Bob Hudson, Northwestern Mutual.

Hudson says if we adults don't show and talk about a budget, spending plan or a process for buying something, the kids can't know it. If they don't know good money skills, they can't mimic good money skills.

For younger kids start off with the practice 1/3 goes to saving, 1/3 goes to spending, and 1/3 goes to giving. The giving doesn’t have to be charity, it could be as simple as using their money to buy a sibling a present.

When they're teenagers, it changes because they have jobs and bills to be responsible for.

“We want to be able to encourage goal-based spending. What would you like to be in a position to do and let them fill in the bank. If it's a major purchase, let's start putting money aside for it,” said Hudson.