Quiz | December 2009

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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Every parent knows that raising kids can get pretty sticky -- literally and figuratively. So we've taken ten common sticky situations regarding young kids and money to put your parental reflexes to the test.

From allowances to gifts to spending, see if you can tell the best way to handle these real-life experiences, and start raising your own money-smart kid:

Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 1 of 10

Your friend bought your child a very expensive birthday gift. Now your friend's son has a birthday coming up. You should...

A. give him something of equal value.
B. stick to your usual gift budget.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 1 of 10

Your friend bought your child a very expensive birthday gift. Now your friend's son has a birthday coming up. You should...

You're right! B. stick to your usual gift budget. is correct.

Sorry, wrong! is incorrect.

The right answer is B. stick to your usual gift budget..

Don't feel pressured to spend more than you've budgeted. Remember birthday presents are for the children, not the adults. And receiving an expensive gift won't necessarily make the kids feel more grateful. It's always better to buy something less expensive but more suitable to a child's interests.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 2 of 10

At what age should you start giving your children an allowance?

A. 3
B. 6
C. 12
D. Never

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 2 of 10

At what age should you start giving your children an allowance?

You're right! B. 6 is correct.

Sorry, wrong! is incorrect.

The right answer is B. 6.

You don't need to give an allowance until your kids are at least 6 or 7 years old. Preschoolers generally don't understand the abstract idea of money anyway. Once children start first grade they begin learning about money in school. It's a good time to give them some cash so they can learn how to spend it -- or save it.

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 3 of 10

Your son receives $20 in his birthday card from Grandma and Grandpa. You...

A. let him spend it as he wants.
B. deposit the money in the bank for your son.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 3 of 10

Your son receives $20 in his birthday card from Grandma and Grandpa. You...

You're right! A. let him spend it as he wants. is correct.

Sorry, wrong! is incorrect.

The right answer is A. let him spend it as he wants..

It's a gift -- let him have some fun. If you feel it's appropriate, you can encourage him to set aside a token amount into savings. But don't whisk all the money away, never to be seen again. Learning how to spend wisely is just as important as learning how to save.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 4 of 10

After telling your children that they absolutely, positively cannot have a new video game system, their doting Aunt Millie arrives and presents them with one. You...

A. tell Aunt Millie the kids can't accept the gift.
B. thank Aunt Millie for the gift. Later, you ask her to consult with you before purchasing expensive gifts for the kids.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 4 of 10

After telling your children that they absolutely, positively cannot have a new video game system, their doting Aunt Millie arrives and presents them with one. You...

You're right! B. thank Aunt Millie for the gift. Later, you ask her to consult with you before purchasing expensive gifts for the kids. is correct.

Sorry, wrong! is incorrect.

The right answer is B. thank Aunt Millie for the gift. Later, you ask her to consult with you before purchasing expensive gifts for the kids..

Not accepting the gift could create an awkward scene in front of the children and seem rude to Aunt Millie. But you need to talk to her in private to let her know your feelings about buying expensive gifts for the kids.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 5 of 10

Your child wants everything in sight when you go to the supermarket. He begins to make a scene when you say no. You...

A. buy him what he wants.
B. let him choose one item.
C. give up, go home without the food and eat at McDonald's that evening.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 5 of 10

Your child wants everything in sight when you go to the supermarket. He begins to make a scene when you say no. You...

You're right! B. let him choose one item. is correct.

Sorry, wrong! is incorrect.

The right answer is B. let him choose one item..

Defuse the situation by allowing him to choose one item. Next time, explain the rules in advance: He may choose one treat –- either a cookie or a candy bar or a box of sweet cereal or whatever else is appropriate. If he settles on the first thing he sees, remind him that he only gets one choice and he might want to think about other possibilities before making a final decision. That should keep him busy and get you off the hook.

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 6 of 10

Your 4-year-old rips open his birthday cards, shakes them to see if there's money inside and immediately asks to be taken to the store to spend it.

A. Shocking! You must be raising one greedy little kid.
B. No biggie. You must be raising one normal little kid.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 6 of 10

Your 4-year-old rips open his birthday cards, shakes them to see if there's money inside and immediately asks to be taken to the store to spend it.

You're right! B. No biggie. You must be raising one normal little kid. is correct.

Sorry, wrong! is incorrect.

The right answer is B. No biggie. You must be raising one normal little kid..

Relax, that's completely normal. Especially with preschoolers, spending is more important than saving. If your child knows that money can be exchanged for things, you're off to a good start that you can build on.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 7 of 10

Your child asks if your family is rich. You...

A. see this as a teaching moment and sit down with her to go over the family budget.
B. respond that you have enough money to buy things you need with some left over to share.

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 7 of 10

Your child asks if your family is rich. You...

You're right! B. respond that you have enough money to buy things you need with some left over to share. is correct.

Sorry, wrong! is incorrect.

The right answer is B. respond that you have enough money to buy things you need with some left over to share..

Usually, what kids are really after with this question is a general idea of how you're doing. Don't bog young children down with too much information –- they just want reassurance that you're doing okay.

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 8 of 10

It's your child's birthday, and she gets so many presents from family members that she quickly gets bored and runs off to play. What should you do?

A. Put the gifts away to open another time
B. Give the remaining gifts to a sibling
C. Open the rest of the presents yourself

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 8 of 10

It's your child's birthday, and she gets so many presents from family members that she quickly gets bored and runs off to play. What should you do?

You're right! A. Put the gifts away to open another time is correct.

Sorry, wrong! is incorrect.

The right answer is A. Put the gifts away to open another time.

She can always open them later (and remember to thank the guests who brought them). But take note: if your child gets bored before finishing opening the gifts, there are too many gifts. Perhaps next time you could set up a college fund for your child and ask relatives for contributions in lieu of gifts.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 9 of 10

Your 7-year-old loses the $5 he got for his birthday from Uncle Bruce. You...

A. ask Uncle Bruce to send another $5.
B. give your son $5 of your own.
C. tell your child he should have been more careful.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 9 of 10

Your 7-year-old loses the $5 he got for his birthday from Uncle Bruce. You...

You're right! C. tell your child he should have been more careful. is correct.

Sorry, wrong! is incorrect.

The right answer is C. tell your child he should have been more careful..

Sad, but it's an important life lesson. If you like, you can always let him do chores to earn another $5.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 10 of 10

You are doing your child's back-to-school shopping. He asks if he can have the Batman lunchbox. You say...

A. yes.
B. no.

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Quiz

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Question 10 of 10

You are doing your child's back-to-school shopping. He asks if he can have the Batman lunchbox. You say...

You're right! A. yes. is correct.

Sorry, wrong! is incorrect.

The right answer is A. yes..

This is one of those times you can give in without guilt. If you have to buy a lunch box anyway and it's relatively inexpensive, you might as well let your kids make the choice. And the next time they accuse you of never buying them anything they want, you can always come back with, "Sure I do. Remember the Batman lunch box?"

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

Results: 0 out of 10 Right

Quiz | December 2009

PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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PARENTS OF YOUNG KIDS: Test Your Financial Reflexes

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