How To Teach Kids The Value Of Money

[texasgal]

I swear my kids think money is a magical piece of paper that I can just print out and give to them for candy, or shoes. I would think that their schools would teach them about financial management but my kids have a dearth of this kind of knowledge. I want to instill in them the ideas of hard work and saving without being an "old fart."

How did you discuss money with your children? Did you incorporate any scripture with your talks to your kids?

 

[matt wade]

Chores and an allowance. Don't buy them stuff all the time.

 

[Ternera]

Talks don;'t really help here. My parents gave me an oppurtunity to make money on my own, so I could feel what does it take. Maybe your kids can help your friends with garden or house work and make a buck to buy themselves an ice cream or a toy.

 

[billwald]

We opened savings accounts in the kids names as soon as they were old enough to understand and had them deposit part of their gift money. My #3 kid, 40 years old, reminded me of this yesterday and said it was a good thing for them.

 

[wulaishiwo]

I feel you should give your kids some money every day and let them manage it all by themselves. Just through this they can learn how to use their money appropriate.

 

[davidmore70]

I think lots of kids don't really understand the value of money these days, with good reason. As American's we've enjoyed so much wealth that even the poorest Americans are doing orders of magnitude better than the poor of other countries so it's hard to try to teach kids the value of money when in their minds it seems to grow on trees.

Make sure to ask them what they think what money is and where it comes from. Also ask them if they understand the importance of saving money and hard work to earn money. The sooner they have the correct concept of money, the better.

 

[Scarlett O.]

Once, when I was teaching 8th graders, the secretary came in and laid my check on my desk. A student went to sharpen his pencil and he was the nosey sort of young man and he looked at check on his way back. He yelled out, "Ms. Kim! You get paid $2,850 a month just to teach us!" He was very indignant as he thought this was equivalent to a million dollars.

Other students looked annoyed at me. I guess they thought that my reward for teaching them was that they loved me. :love2:

So, I took this as an opportunity to explain how money works. I showed them all my check and let them pass it around and inspect it thoroughly. I explained the difference between gross vs. net and pointed out the two different amounts on the check. They didn't like it that I did not have a choice about all the deductions that come out of my check. I told them that their parents have the same deductions, too, and no one asks their permission either.

Then I wrote my net balance on the board and began asking them what kind of bills did they think that I had to pay. I started them off with my church contributions (which was also a good way to share my testimony) And then I let them call out some guesses. After subtracting the tithe/offerings, house note (at the time it was a BIG chunk), car note, all insurances, savings acounts (in my opinion this is mandatory) TV, phone, electricity, computer, gasoline, groceries, medications, and more, they began to feel sorry for me. :saint:

And then I shared with them that I paid for all of the art supplies, extra pens, pencils, construction paper, Kleenex, class snacks, and more for the class to use every month. I explained that there was more in that classroom that they made use of that I had to pay for out of my own pocket than they could imagine. I also took the time to make a plug for "parent appreciation" and I told them that their parents had the same bills as I did and they also had to feed, clothe, shelter, and pay the same bills for their children.

After all of the deductions, I had a grand total of $50 left each month. I was always grateful to have it and never felt slighted.

They offered to chip in and buy my lunch!! :tongue3: I told them that I was blessed and appreciated it, but didn't need it.

Perhaps if you gave your children some chores to do and paid them for it, when you sit down to give them the money, itemize some "deductions" and I'll bet they appreciate the "net" pay so much more.

It's just human nature. When you have to earn the money and no one else chips in to buy you anything at all, you tend to make wiser decisions and to not be a spend thrift.

 

[rbell]

Well done, Scarlett. Pity that more parents don't teach those life lessons before you have to.

 

[238480]

I too am a school teacher, and while we've done money management lessons with my middle school students, I've never had one go quite that well!

I am also a foster parent with three boys ages 9-13, and I give them a small allowance for doing their jobs. It has taught them something about money - at least that they need to keep it in a safe place and not lose it! It has also taught them that they will need to save their money to get the really nice things.

 

[Scarlett O.]

I too am a school teacher, and while we've done money management lessons with my middle school students, I've never had one go quite that well!

I am also a foster parent with three boys ages 9-13, and I give them a small allowance for doing their jobs. It has taught them something about money - at least that they need to keep it in a safe place and not lose it! It has also taught them that they will need to save their money to get the really nice things.

You can be rest assured that I had plenty of lessons that did NOT go well! HA! But I do believe in the "teachable moment". There were plenty of times when something just came up that was an opportunity for a life lesson as well as an academic lesson that I just couldn't pass by.

Whew!! Kudos to you for being a foster parent! :thumbsup:

 

[FriendofSpurgeon]

Not a big fan of paying children for chores around the house. We do chores around our home because it is our home -- not because we are paid to do so. Plus, we pick up after ourselves, wash our dishes, clean up our messes, fold our clothers, etc. simply because that is the right thing to do -- not because we get paid for it.

 

[TomVols]

Teach kids...but modeling good Christian stewardship is the best lesson. Kinda hard to tell kids to be good stewards as you're handing the waitress at Outback your Discover card after the Capital One got declined because you're over your limit.

 

[gb93433]

People learn to manage money by having money to manage.

When our daughter was young we figured out how much we spent on her for one year and then from that point we divided the yearly cost by 52 and gave that to her each week. She is now a senior in college and has never had a financial problem.

She learned to shop for value and not always what was cheapest.

 

[Ruiz]

When I was young, we barely had enough money to eat every month. My mom went to school full time and worked full time in an attempt to put food on the table. We valued money because we didn't have money. Today, all three of her kids have been very careful in how they use money because we knew poverty.

Americans often don't value money today because we are too prosperous.

 

[billwald]

I think the continuing depression will be a fast teacher. The Wall Street demonstrations are evidence the young adults are catching on.

 

[dyanmarie25]

I don't have kids yet, but when I was young, I knew back then that money is really important. My parents have always worked hard just to be able to raise us well. I have never asked them money for any material thing. I have only asked them for my allowance, and I would always try to spend my money wisely.

 

[ElenaP]

I have a similar opinion to Ruiz. My parents started with nothing and I watched them build their wealth from the ground up. I always understood and valued money because we were quite poor to start and even when we became comfortable my parents were still tight with cash.

Just by watching the parent's behavior with money, a child learns a lot, and I believe ends up having the same relationship with money that the parent has.

 

[ApollotheBrave]

I don't have children yet but what my parents did when I was young was give me a piggy bank to save my pennies into. Also, they gave me my own bank account when I turned 16. They also told me to conserve water, energy and food as well and that really helped me to live a modest and minimal life without loans and such. I'll probably be teaching my children the same thing.

 

[cross89]

I swear my kids think money is a magical piece of paper that I can just print out and give to them for candy, or shoes. I would think that their schools would teach them about financial management but my kids have a dearth of this kind of knowledge. I want to instill in them the ideas of hard work and saving without being an "old fart."

How did you discuss money with your children? Did you incorporate any scripture with your talks to your kids?

I don't know how old your kids are but if they are under 13 years old, an exchange of chores for money usually works as long as you're not buy them everything else. If they're older I would suggest having them read Robert T. Kiyosaki's "Rich Dad Poor Dad for Teens" and have them work for a big item like a car or clothes. You could try to create a family budget with their allowance from chores included in. Sometimes kids don't understand that rent, utilities, and food cost money even thought they're asking for it. Another solution is to have them try working, there are tons of online sites that let kids 13 and up make their own money. They'll spend their own money differently when they've had to make it.