Teaching Your Kids About Money
In today's culture, I think it is important for parents to teach kids about money. I know most parents don't have a clue how to reach their kids when it comes to drugs, sex, and most especially, money. Still, for those of us that have even an inkling of good financial habits and behavior, take the time and make the effort to teach your kids. They're not going to learn how to do it school, on television or on the Internet. Well, at least not the right way, anyway. So, if you're wondering where to start, here are four things that kids need to learn about money.
1. They need to learn where money comes from.
Money comes from work. Our little girl earns commission for doing her chores. She does not get an allowance just because she exists. We set up a dry erase board with a list of chores for her. When she does her chores, they get checked off and at the end of the week, she gets her commission. Give your kids some chores and attach a money figure to them.
2. They need to learn how to save.
Now that your child has the money they earned in their little hands, disperse it into three envelopes: saving, giving, and spending. With that chore list, our daughter's maximum commission (weekly) is $5. In these envelopes, she places $2 into saving, $2 into spending, and $1 into giving.
One thing we look forward to doing when our daughter is old enough, is the 401MD (mom and dad). We will tell her that she will have to buy her own car. Whatever she saves, we will match it. But, here's a tip, set a limit on the amount that your child saves or be prepared.
3. They need to know how to give.
Whether you attend church or are involved in charitable organizations or events, it's important to teach your kids to give. Not to make them feel better, but to build their character. As a Christian, we give a tithe (tenth of our income) to our church. We'd like our daughter to learn that it is important to give a little of what we have been given to help others minister to those in need.
4. Let them spend their money.
Well, this one's easy, if they're anything like us, right? The point of teaching them the first 3 things is so they appreciate where money comes from and can be smarter about how they spend. They can spend their money, guilt-free. That's what it's for after all.
It's been great to see our daughter learn good money management skills. It is our responsibility to teach them the skills they need in life, and money is no exception. We had to learn the hard way, but, God-willing, she'll be prepared.
1. They need to learn where money comes from.
Money comes from work. Our little girl earns commission for doing her chores. She does not get an allowance just because she exists. We set up a dry erase board with a list of chores for her. When she does her chores, they get checked off and at the end of the week, she gets her commission. Give your kids some chores and attach a money figure to them.
2. They need to learn how to save.
Now that your child has the money they earned in their little hands, disperse it into three envelopes: saving, giving, and spending. With that chore list, our daughter's maximum commission (weekly) is $5. In these envelopes, she places $2 into saving, $2 into spending, and $1 into giving.
One thing we look forward to doing when our daughter is old enough, is the 401MD (mom and dad). We will tell her that she will have to buy her own car. Whatever she saves, we will match it. But, here's a tip, set a limit on the amount that your child saves or be prepared.
3. They need to know how to give.
Whether you attend church or are involved in charitable organizations or events, it's important to teach your kids to give. Not to make them feel better, but to build their character. As a Christian, we give a tithe (tenth of our income) to our church. We'd like our daughter to learn that it is important to give a little of what we have been given to help others minister to those in need.
4. Let them spend their money.
Well, this one's easy, if they're anything like us, right? The point of teaching them the first 3 things is so they appreciate where money comes from and can be smarter about how they spend. They can spend their money, guilt-free. That's what it's for after all.
It's been great to see our daughter learn good money management skills. It is our responsibility to teach them the skills they need in life, and money is no exception. We had to learn the hard way, but, God-willing, she'll be prepared.
posted by Emma at 10:08 PM
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