Back on June 14, Cramer did a special show on how to educate our kids about stocks and money. He said that we need to "teach our kids the basics, because they're not going to learn them anywhere else."
He's right. Tons of kids are financially illiterate. In a national personal finance survey, 68% of 4,000 student respondents failed. Spending by U.S. teens exceeded $175 billion in 2001 -- that's equal to Mexico's exports. In addition, teens spend 98% of the money they receive. So they're not saving.
And it's no surprise that they're racking up debt too. Teens entering college are offered an average of eight credit cards during the first week of school. That's on average. (Some people, like my son, get their first credit card application when they're only 3 weeks old.) Most college kids have about three credit cards while in school; as a result, 45% are in credit card debt.
Ignorance and money are a dangerous combination, so it is very important we help the kids. And the Booyah Breakdown is going to offer you some good tips to get started, because it's never too early to start talking to your children about money.
Teach the PeanutsTalking money to your kids is clearly determinant on your kids' ages. Don't even bother talking to your 3-year-old about your Apple (AAPL) shares. She'll just want to snack on them with peanut butter.
But you can discuss the concept of money with them. "Start talking to them when they start saying 'I want,'" says Neale Godfrey, chairwoman of the Children's Financial Network in Chester, N.J. and author of Money Doesn't Grow On Trees: A Parent's Guide to Raising Financially Responsible Children. She suggests age 3 (although I swear my kids were saying that right after their second birthdays). At that point, you can begin to teach them that they get things when they earn them.