This guest post is by Sam X Renick, Author and Social Entrepreneur

Here are a few simple, yet practical steps to teach kids about money:

1. Regardless of age - focus first on making saving a habit. Right off the bat this gives kids an additional option for their money besides spending. Secondly, saving has several benefits other than being a deterrent for poor spending. Here are a few: (a) it prepares us for emergencies and provides us more security; (b) it better positions us to make dreams come true; (c) it helps us to help ourselves and others; (d) it helps us get what we want and need when we want and need it; (e) it helps our money/savings to grow; (f) it gives us more choices, freedom and independence.
2. Next help kids set goals and make plans for achieving those goals - including savings goals. Plans can be as simple as listing a few written steps for accomplishing the goal. Kids and adults with a purpose or an idea of where they are headed tend to do better and struggle a little less with spending choices.
3. Now, concentrate on smart spending. As appropriate, include kids in shopping and spending activities like going to the grocery store and paying bills.
4. Finally, emphasize interaction, involvement, and incentives. Look for creative ways to deliver repetition. Being a children’s author and songwriter, I always like incorporating reading and music into the above activities. Playing games like Monopoly, doing activity and coloring books, creating family and personal savings jars are a few more examples of how to vary activities for kids.

Two of my favorite books for adults on raising money smart kids are:

Raising Money Smart Kids by Janet Bodnar and Yes You Can! Raise Financially Aware Kids by Jack Jonathan. Two solid books on allowance are: Allowance Magic by David McCurrach and The Ultimate Allowance by Elisabeth Donati. And, check out the Jumpstart Coalition website: www.jumpstartcoalition.org it is a great resource for financial education and advocacy.

About the Author:

Sam X Renick is founder of the It’s a Habit! Company and co-creator of children’s financial education and good habit character “Sammy Rabbit” as well as being an author and songwriter. Sam and Sammy have been hopping around the nation visiting schools, military bases, and other venues using their books, music, and live performances to share a secret with kids and families: Saving is a great habit! It makes you strong and secure and it helps you make dreams and goals come true. In 2007, It’s a Habit! received the California Jumpstart Coalition Leadership Award and in 2008 the company’s first book It’s a Habit, Sammy Rabbit! received the Institute for Financial Literacy’s children’s book of the year award. You can learn more about Sammy’s mission to change lives one dime and habit at a time, his books and music at www.itsahabit.com or at www.sammyrabbitblog.com