GETTING STARTED Pocket the Best Plastic How to Fix a Credit Report Error How to Adjust Your Withholding Life Insurance Made Simple Fill the Holes in Your Homeowners Insurance More... TOOLS Search for the best credit card Should I pay off debt or invest in savings? How much life insurance do I need? 2004 survey of state tax burdens The true cost of paying the minimum Research your bank Recent Columns An Enterprising 7-Year-Old - Feb. 3, 2005 Investing Resources for Teens - Jan. 27, 2005 Establish Money Rules up Front - Jan. 20, 2005 Save Now to Avoid Financial Aid Crunch - Jan. 13, 2005 Roth IRA Rules for Kids - Jan. 6, 2005 Parents Can't Tap Child's Custodial Account - Dec. 30, 2004 MORE ... MONEY SMART KIDS E-MAIL   Sign Up   Now you can have Money Smart Kids delivered to your inbox every Thursday. Sign up now.

MONEY SMART KIDS
Make Financial Education Fun
by Janet Bodnar

This week I'll conclude my reviews of financial books, games and videos for kids with a look at products designed for children of elementary-school age (or even younger).

These may be the toughest kids to reach because they're not ready for high finance. But you don't have to teach them the ins and outs of the Federal Reserve System. You just need to present an engaging story (or a fun game) that has a simple lesson.

One book that does both is "The Peanut Butter and Jelly Game," by Adam Eisenson (Good Advice Press; $14.95). Harry the Gorilla splurges on a baseball mitt, but then has to scavenge among his friends to get the ingredients for a peanut-butter-and-jelly sandwich.

It's a good lesson in wants versus needs, with a touch of consumerism thrown in -- Harry returns the mitt for a refund. The author recommends that you jazz up the reading by having your kids do something -- jump up and down, stand on one foot -- each time they hear the words "peanut butter" or "jelly." You can be the judge if that helps or hinders the tale.

Shopping Spree ($16.99) is a simple game for kids ages 4 and up. Players go around the board making purchases from each of six stores -- pet supplies, toy shop, book store, sweet shop, deli -- while saving enough to pay for parking.

In the video "A High Price to Pay" ($9.98), Teddy assumes that rich kid Jeff gets his skateboard and all his other neat stuff from his parents. Turns out that Jeff works all weekend delivering papers, cleaning dog cages and mowing lawns to earn money to buy his own stuff. "Nothing in life is free," Teddy concludes.

There's a secondary lesson as well: Jeff's parents may be wealthy, but they have to spend a lot of time away from home running their business.

Last but not least is a software program I think is suitable for older middle- and high-school-age kids. Family Bank ($49.95) is a kind of Quicken for kids. You open an account into which you can credit a child's allowance, make savings deposits and pay interest. When kids want to withdraw real money, they print out a check that you cash.

I like this program because it's easy to use, and because it's similar to the paper-check allowance system I've used -- successfully -- with my kids.