Teaching kids to be smart with money

March 27, 2011 6:29:18 AM PDT
The tough economy has taught us all a harsh lesson how important it is to be smart about your finances -- and that includes children.

The 10th annual Money Smart Week Chicago 2011 aims to educate everyone from children to adults about the right way to handle personal finances.

The week goes from April 2 to April 9, and it has more than 500 events. The 2011 Money Smart Week Kid will be announced on Monday, April 4.

To kick off the week, we had special guests in our ABC7 studio: Ben Franklin came in, along with the 2010 Money Smart Week Kid, Kamal Bilal from Chicago.

Bilal is a freshman at Whitney Young High School, and he plans on being an investment banker. Bilal and Ben Franklin discussed why it is important to save, and how kids can learn money-saving tips.

    Kamal Bilal's Money Smart Tips:
  • Have a savings goal: You don't need a lot of money to save, once you start you'll see how much easier it is to save.
  • Save a percentage of your earnings.
  • Save your change.

Top 10 Money Smart Tips
From Money Smart Week partner Chicago Treasurer Stephanie Neely www.savespendgrow.org

  • Pay your piggy bank first. Set aside money for savings before you spend your paycheck.
  • Create a rainy-day fund. Save at least $500 for emergencies.
  • Hide your credit cards. Put them in a safe place so you won't be tempted.
  • Know what you owe. Add up your total debt and post the amount on your refrigerator.
  • Late fees waste your money. Pay bills on time.
  • Do I need it or just want it? Think it over before you buy.
  • Budget for what you love. Including things you enjoy will make it easier to stick with your budget.
  • Make money a family issue. Tell your kids about your savings goals.
  • Pay cash. It's a lot harder to overspend.
  • Put your savings on autopilot. Set up a direct-deposit savings plan at work.

Money Smart Week Chicago 2011
April 2 - April 9

    Events include:
  • Personal Finance 101
  • Retirement Savings
  • Money Management for Women
  • Saving & Planning for College
  • Kids and Money