Sing with us, “Heard it all before ….” That was us rolling our eyes at our parents when they would say, “You think money grows ON TREES”?! Now, the roles have changed and our parents are watching you in the parental role. This is a different age and time and now being progressive adults, we include the children and seek to educate instead of barking out frustrations at them. With this in mind, it is an excellent idea to teach the kids about money matters.
This is the perfect time to sit your kids down and let them in on the family budget. This doesn’t have to be a detailed exercise, a general overview should do. For example, simply use the summer activities to illustrate your point. Show them how camp and all of the extra filters into the essential bills that you have to pay. Once they see this, they may better understand the responsibility that lies in your hands. You can help them by:
- Giving Them jobs
Some may disagree that children should get paid for chores, however this is another opportunity to give them some financial responsibility. It is okay to tell them, but putting them to work and letting them earn, is a hands on experience. Once they realize how long it takes to make what they receive, they may not want to blow it on that new gadget or some fresh new gear.
- Teaching How To Budget and Save
Teaching your child to budget is a great educational tool that they will carry for life. Once you pay them for their chores, take back 50%. The money that is leftover, they can choose to do with it what they wish. It is important to show the benefits of budgeting and saving and to show your child how much they accumulated with saving.
- Extending Credit
A constant crossroad that you may face is your child wants something and doesn’t have enough money. Extend credit with the clear understanding that interest will incur and will be deducted upon their next payday. Chart their money transactions on a chalk or white board so that they can have a visual track of where they are. This is helpful with showing them the difference with checks and balances.
When having kids, we vow to give them the world. Preparing them for adulthood is a daily job, and giving without consequence can be one of the most disabling things you can do for them. Even if money is no option, lessons on making, saving, budgeting and spending are lessons for life that are valuable to any child.
Written by: Joyanne Lawrence, Staff Writer , Modern Domestic