Kids Learn How to Manage Money KEYE CBS 42 January 14, 2008 Kids and cash. While you may not think the two go together, these days young children are learning how to manage and invest their own money. They’re learning these very adult lessons at Parkside Community School in South Austin. Here a group of third through sixth graders are playing a game in which the goal is to increase their cash flow. Nine-year-old Sita Hill talks about her passive income. That’s just one of the terms now part of her vocabulary. She’s in the Grow Your Money club, one of the programs offered by The Money Academy, a company that goes into schools to teach financial responsibility.

Gayle Skiera is the founder.

“This is the age that they’re in the inquiry about money. This is exactly when they want to know,” Skiera says.

Hill wants to know how she can become a millionaire, Chase Franklin wants to know how to stretch his money and not spend it all at one time.

By playing games and engaging in real dialogue these kids learn that money is a tool.

“If you can entice them with the idea that they can use their money to make more, they get it,” Skiera says.

But do they really need to be smart with their money at such a young age?

Financial consultant Melissa Knippa says absolutely: “You want them to have the tools to counteract commercialism because at a young age they’ll experience the world telling them to spend.”

She recommends parents teach children to divide their money into three areas -- share, save, and spend.

And most importantly, parents should practice what they preach.

“If we actually do what we say then children are going to pick those lessons up,” Knippa says.

So far, Hill and Franklin have picked up some good money habits.

“Let it grow,” says Franklin. “I’m going to keep on investing,” says Hill, “it would be nice to have financial freedom.”

These kids are well on their way.

KEYE CBS 42