Many students first encounter economics with a course in high school or college. But it's never too early to learn basic economic skills and money management that will be needed to last a lifetime, a University of Nebraska-Lincoln business and economics educator said.

"A child that understands the concepts of economics understands that every choice has a cost, and that you can't have all you want at no cost," said Roger Butters, UNL business professor and president of the Nebraska Council on Economic Education, a statewide resource that promotes economic education in grades K-12.

"When we teach children about economics we give them the tools to understand the world around them and help them make better choices," Butters said.

Parents can begin with simple lessons in decision-making; for example, letting young children choose between a cookie or candy, but not both, discussing how to best allocate the resource based on the limitations. Older children can learn about choices and comparison-shopping during a trip to the grocery store.

Other time-tested money lessons come from experience with a lemonade stand, weekly allowance, or saving and spending gift money. Games such as Monopoly, Life and SimCity can prompt family discussions about money.

While economics lessons should start at home, schools are beginning to stress economics in the lower grades. The Council on Economic Education provides classroom materials to teachers, runs programs such as the Stock Market Game, and helps schools teach financial literacy through student-run branch banks.

One such bank opened this spring at Thayer Central Elementary in Hebron. Economics curriculum comes to life as fifth graders staff the working bank. Students make deposits with real money and learn the benefits of saving.

"These students will begin to realize it's about saving for the future," said Kurk Wiedel, principal of the school. "It's about planning for your future so when you get to be retirement age or even when you have a family, you're prepared for whatever comes."

Teachers see the benefits of starting early with life lessons in economics.

"We see kids at school whose families don't handle finances well and it affects how they learn at school," said Ann Baden, Thayer Central fourth-grade teacher. "If we can nudge a lot of them out to be savers, I think it will make for a better start in life for them." Financially literate kids grow to be financially literate adults, Baden said.

Tips for parents to teach children about economics

The Nebraska Council on Economic Education offers these tips to help parents teach children about economics:

- Sometimes parents are too quick to solve problems for children. Help children think through the possible outcomes or consequences of their daily choices.

- Let young children learn about personal finance by making their own earning and spending decisions. If they have to earn the money, they will have a better appreciation and understanding of the saving or spending outcomes.

- Provide children opportunities to work and incentives to save. Offer rewards for attaining savings goals and explain the how savings makes it possible to do big things. Consider running a family bank where children deposit money, earn interest and make spending choices.

- Bring children grocery shopping and teach about buying, comparison-shopping and saving.

Parents can join in the Nebraska Stock Market Game. The family can manage a virtual stock portfolio. Contact the Council at (402) 472-2333 for more information.

- Online games that teach kids principles of economics:

www.orangekids.com (earning, saving, spending and investing simulation)

www.moneyopolis.com (money and math skills)

www.lemonadegame.com (online lemonade stand)

http://autotown.unl.edu (car purchasing simulation)

Contact: Roger Butters, president, Nebraska Council on Economic Education, (402) 472-6801