Tips to teach young ones basic money skills

HOUSTON (KTRK) -- School will be out for summer soon and that means most kids will spend summer at home. So how can you get them to earn their keep?

Money experts say this is the perfect opportunity to teach kids about making money and basic money skills.

At just 4 years old, Joe Jarvis took his first job in the garbage business. Now at age 6, he is armed with his own business cards and selling bubbles at the Kid's Marketplace. The event is organized by Eda Morita for the students at the Mandarin Chinese Immersion School in Bellaire.

"Our kids really need a club where they can learn all the skills that we as adults are still learning ourselves," Morita said.

These pint-sized entrepreneurs are selling whatever they can to hopefully turn a profit.

One child was selling toys he wasn't using anymore. Another sold two gallons of lemonade. It isn't just about the money, but also the social skills the kids learn while setting up shop.

"They are here to open up stores on their own in order to practice those skills that they learned in the last couple of weeks," Morita said.

It's these types of lessons that are so crucial when it comes to money and raising kids, says financial expert Rachel Cruze.

Cruze released a book co-authored with her father Dave Ramsey called "Smart Money, Smart Kids." The book details the specific steps to take in order to teach kids about money, along with examples of how to put the practices into place.

To get younger children, ages 5-13, on the right path to learning about money, Cruze says teach them about the power of earning money. Allowance isn't something that should be expected without earning it.

When children earn money, she suggests kids break their money up into three sections - spend, save, and give.

It's those lessons that parents hope their children learn now so they can live a life of financial freedom.

For more financial tips from Cruze, download the first two chapters of her book online for free here.