I’ve noticed more and more ”kids” becoming adults and finding out they have no money management skills. They take a look at their first paycheck and don’t understand why it’s less than they anticipated (Hello! You have to pay the government). They are in debt up to their eyeballs after spending their college years paying for Starbucks every day and going out to eat every night. They have absolutely no idea how to balance a checkbook (true story...I know several).
This is such a wake up call to me as a parent. We teach our kids so many things, but sometimes we forget to teach them about money. Obviously I’m not going to teach my eight year old how to get out of debt or smart investment choices, but I AM going to start by teaching her how to save and the value of a dollar.
Here are 5 ways we are teaching money management:
Earning money: Every family has its own allowance system. You find what works for you. We see chores as something you have to do as a part of the family, but when she goes the extra mile like helping me mop or helping out with the baby while I get things done we reward her with money. She knows she has to work hard to get the money she earns.
Keeping track: We started a check register for her to keep track of her money in her piggy bank. She’s old enough that she can add and subtract, so each time she earns money she writes it down in her register. Just simply seeing how money has to be added and subtracted every time she makes a “deposit” or “withdrawal” helps her to see the worth of her hard earned money.
Visualizing monetary value: We took the time one day to count out all her money. We made $1 piles of each currency and talked about how many pennies it takes verses how many quarters it takes. Having a visual helped her to see the value of each coin.
Think before you buy: If there’s something she really wants she has to pay for it herself....most of the time. (We do treat her sometimes. 😉) We talk about the purchase beforehand. Is it really worth what it costs? Will you get a lot of use out of it? Is it special? Can you find a better deal somewhere else? We’re helping her to not only earn what she wants but to help her not make impulse buys. She’s not allowed to just spend her money willy nilly.
Tax: We also help her to factor in tax when buying something. We explained that everything had tax and explained why we have taxes. She’s obsessed with it now! When she tells us the price of something she always says, “plus tax”😂😂. I love it! That means something we’ve taught her actually sunk in!
I‘m hoping that teaching our kids early in life these simple concepts will help give them the foundation and the confidence they will need as an adult to manage their money wisely! 💕
Comments