Money and Life Lessons for You and Your Kids
July 31, 2012
Do your children, big and small, understand money? Do you?!? Learning to organize, understand and manage money is a necessary part of growing up, but there is no guarantee your children will learn about budgeting, bill paying, net income or the value of a dollar in school. Like all life skills, the sooner we start teaching about money skills, the better our children will learn the lessons.
What Lessons Do We Want To Teach Our Children About Money?
Very young children:
Set up a savings account in their name
Understanding that we exchange money for goods and services
What money looks like
Young school age children:
Value of a dollar – what goes into earning a dollar, and what it can buy
Money is finite, and Money spent on one thing can’t be spent on something else
School age children:
A healthy understanding of your financial views
Value of work
Appreciation for money spent
Budgeting
How advertising works
Charitable Giving and Savings
High School age children (list is endless, but includes):
Household budgets and salaries
Costs of higher education
Benefits and pitfalls of credit, and Establishing a good credit score
Investments, interest and the stock market
How Do We Teach Money Lessons to Our Children?
Let them handle money. Give them money of their own, and let them earn more money by their own hand. Our boys earn a set allowance (the dollar equivalent of their age every 2 weeks) for regular chores, and can earn more for extra projects. I know there are lots of differing views on children’s allowances or salaries, I am just presenting ours.
Lead by example. Start with a trip to the grocery store. Have the kids review the weekly store flyers with you, and make your weekly menu or shopping list. Show your children how you compare prices and quality on your favorite products. Discuss brands and advertising. Use coupons and sales to save money.
Limit today’s lessons to those you think your kids are ready to learn. Use small words and real world examples. My 7-year-old won’t grasp tax rates and returns on investment, but he understands the exchange of money for goods and services. He also knows that if he wants that new game, he needs to save his allowance for a month or 2, do extra chores or ask for it for his birthday.
But, Don’t dumb it down. My 14-year-old sat with my husband the last time he paid bills, to better understand our family finances. Involve your kids in financial conversations. They don’t need to know the details of your finances, but they can certainly listen as you discuss major projects, budgets, opportunity costs, comparison shopping, etc.
Teach gratitude and giving. My family is blessed with all that we need, and often everything that we want. In our family, we encourage charitable giving of money and belongings from a very early age. The kids donate books and toys and clothes to charities, and help us with service projects for those less fortunate. Helping your children recognize how blessed they are with what they already have can help to counteract the “wants” list, and curb spending.
Your children’s money education starts with you. For more information on these topics, check out these resources:
Debt Proof Your Kids by Mary Hunt, http://www.debtproofliving.com/
And because I always get asked, I have a list of age appropriate tasks that I distribute at my “An Organized Family” class. Here it is….
Age Appropriate Tasks & Chores
Adapted from “My Happy Little Helper”, Parents Magazine 10/03
Ages 2-3
Comb and brush hair
Get clean diaper and wipes
Wash and dry hands
Lather and rinse body (3)
Select clothes from choices
Put on loose-fitting clothes
Put on coat (no zipping)
Brush teeth, with supervision
Bring silverware to table
Wipe up spills
Pick up and put away toys
Put dirty clothes in hamper
Take own plastic dishes to sink
Ages 4-5
Pour from plastic pitcher
Put on shoes (tie laces 5-6)
Straighten bed
Empty wastebaskets
Dust furniture
Wipe kitchen table
Feed pet
Clear table
Help unpack groceries
Sort laundry by color
Help put clean clothes away in drawers or on shelves
Swiffer wet, anyone?
Ages 6-7
Sweep into a dustpan
Set table
Help wash car
Put groceries away
Help shovel snow or rake leaves
Remove dishes from dishwasher
Sort silverware into drawer
Run shower or bath (age 7)
Water garden or houseplants
Ages 8-10
Fold Laundry
Strip and make bed
Load and run dishwasher
Put clean dishes away
Help care for younger siblings
Vacuum, sweep and mop
Brush and floss teeth un-assisted
Load washer and dryer
Take out trash
Weed the garden
