Teach Chess to Teach Kids About Money

The article cites several other things parents can do to teach their children about money and how to handle it. But teaching kids how to play chess makes sense to me because of the known benefits in developing critical thinking skills and self-control. From NuWire Investor Teaching Kids About Money: 10 Tips Ways for parents to teach their children about money Published on: Wednesday, December 26, 2007Written by: Trista Winnie Parents have been giving financial advice to their children for ages. "Neither a borrower nor a lender be," Polonius told his son Laertes in William Shakespeare's Hamlet. As with good hygiene and good manners, most parents strive to teach their children lessons on how to be good at handling money. "If you can teach your child the difference between needs and wants, how to budget and how to save, your child will know more than many adults," according to Scott Reeves of Forbes. "But if you get it wrong, your child is likely to join the millions of Americans who rack up huge credit card debt and get stung each month by stiff interest payments." In other words, no pressure. The lives of children who understand money, its value and how to handle it will be far easier than those of children who don't. Here are 10 tips for teaching your kids about money, focusing on saving and investing money, so they will grow up and use it responsibly. . . . 3) Teach them critical thinking While not directly a lesson in money, kids who learn how to think critically will make better decisions when it comes to money because they will be able to consider the short, medium and long term effects of their decisions, as well as plan for contingencies. One great way to teach them how to plan, strategize and think critically is to teach them chess. Chess is a game in which cause and effect, concrete rules, analysis and planning for different scenarios are all crucial. Chess can also help kids hone their ability to recognize when to take risks and when to play it safe, which is a critical investment skill. A real life example of this can be found in the story of David MacEnulty, an English teacher who taught a group of inner-city, low-income students in the South Bronx how to play chess. These students went on to compete and win in chess competitions and their critical thinking skills put them on the path to success. The story was documented in the 2005 movie, Knights of the South Bronx.