Raising Financially Responsible Kids
There is no time like the Holiday Season to really instill some monetary values into our children. As soon as those letters to Santa start getting drawn up, we know we haven’t got a chance. Ponies, Xbox, Plasma TVs, whatever big ticket item that the kids want, we can never get, so how do we teach them about this? How can this be a learning experience? The best defense is to start with your kids early on, by 3 or 4, they are ready to start understanding money and costs, but even if you are starting later, all kids can benefit from an understanding of finance and money.
- Most kids will understand money better if they have some of there own. If your kids aren’t already getting an allowance, start now. A good rule of thumb is .50$ for each year of age per week. Please, make your kids do SOMETHING for that money, they need to understand that it is EARNED. Make them save a portion of it in a piggy bank or in a real bank savings account, so they can learn that it will grow over time. The idea is that they earn money, they save money, they end up with a lot more money.
- Teach them about costs. Ask them to make a wish list, then ask them to figure the costs of these items by either going to the store or searching online. Then have them figure out how many weeks or even years it would take them to save enough to buy that item. Junior wants a new bike, it costs 70$, he gets 5$ a week, so it will take him 14 weeks to afford that bike if he saves every penny of his allowance. Explain that this means, no using his money for candy or toys until those 14 weeks are up, and show him just how long that is on the calendar. This can be a big eye opener for kids, for them 1 day is like an eternity.
- Teach them about taxes they will pay, that 1$ item will actually cost him 5-10 cents more after tax, explain this to your kids when out shopping, so they understand the hidden costs of tax, that sticker price isn’t actual price.
- If they really really want something, you know those items they need to have or their lives are ruined forever? Make them work for it. I mean it, mow grandmas grass for 10$, walk the neighbors dog, wash the car, whatever is available and age appropriate. They need to get the connection between hard work and rewards, they also need to get the connection that this is what Daddy and sometime Mommy do in order to have their money too.
- Teach them about the cost of things that are unseen. Explain that for instance, grocery stores have raised their prices because gas prices have gone up, and that is because oil prices went up and that in turn makes the cost of shipping groceries go up, so the store pays more and charges more. The point they need to get is that money really does move the world around us and without it and the all important knowledge of financial matters, they will be lost. They need to get the importance not just of money, but of the relationship between money and business.
Topics: Finance & Money, Life & Family |
January 5th, 2008
Excellent post! Thanks for submitting to Mom’s Blogging Carnival. You can see your post (and others) here: http://www.gogirlfriend.com/re.....nival-4560
Enjoy!
Julia Rosien, Editor
http://gogirlfriend.com