While parents often say that their kids think money grows on trees, parents often don't sit down with their kids to show them what it takes "to live." If your family is like most, the kids don't think much about gas, electric, and phone bills. They're even less likely to think about mortgages, taxes, health insurance or auto loans. However, they may be aware of more obvious costs, like paying for music lessons and groceries.
Having an open discussion about the monthly bills is a dose of real life that will help teens and tweens appreciate where the money goes. This is also a great way to prepare them for their life once they leave the nest. Kids whose parents teach them about money grow up to be better savers – putting them on the road to financial security and independence.
Here's an eye-opening activity for the whole family. Everyone sits down at the kitchen table with the monthly bills, and the adults start paying them. As the parent introduces each bill, Mom or Dad should comment on it. Here are some points to discuss.
If you really want to make your point, with some dramatics… Bring piles of cash to the table for a real world Monopoly game. Stack the money on top of each bill you pay. When you're done, the family should use a calculator to total all the payments. Then add in the cost of a month's groceries. Let that total sink in. Then explain that you pay many of these same bills over and over every month.
Source: mint.org
