by Harriet Hairston
I found a valuable article on Yahoo.com that gave me a starting point with concrete suggestions on how to teach my children about money. Right now, my four year old son knows that the magic is in the debit card, and that cash is used for tithes we give to the church. He hates spending money at a cash register, but loves giving it away to people he cares about. Beyond that, he’s a novice (and if the truth be told, I’m a novice at teaching him about it).
Anyway, this article showed parents how to teach their children concrete facts about money. For example, the #1 rule to teach is this: kids need to know that they cannot spend money until they earn it. Imagine a world where everyone adhered to this one rule of thumb!
At any rate, the 15 principles can be found in the attached photo. BMWK, how do you teach your children about money? What kinds of creative ways are you ensuring they develop fiscal responsibility?
God bless!
~ Harriet
As a grandparent, I had to think a while about how we taught our children about money. I recall that I took them to the bank at about age 5 to open a savings account, so that they would receive a monthly statement and begin to understand what a relationship with a bank means. We didn’t give credit or debit cards to our children until they were in college, but the experience with the bank as youngsters prepared them for avoiding overspending. We helped them to purchase their first automobiles — and they understood they had to pay the monthly bills.
The shortfall for us was a lack of understanding of the stock market in our early years of parenting. Today, with the advent of 401K plans and online brokerage accounts like E-Trade, and TD Ameritrade, or Charles Schwabb, I would recommend that everyone should open an account and read the research reports to learn about the stock market — the best way to accumulate passive income. This personal approach to investing can also help inform wage earners about how to manage their 401K plans.
Custodial accounts can be opened for children to intorduce them to this tool for creating wealth.
The rules in the article at Yahoo.com are good rules. Each family should make their own financial rules that fit their lifestyle and means. All young children get hooked on TV commercials at an early age and fall into the “I want that” syndrome before they understand the value of work and money. That is a good opportunity to teach them about wants and needs, long term savings, investing, and wealth creation for a better life style when they are older. So much of what our children are exposed to is based on avarice. We have to create the balance at an early age.
Roger Madison
Roger makes quite a few great points in his post… I work in the financial industry and when I parents bring their children to open accounts, I go over these exact same things with them… That graphic is great!
.-= Ed´s last blog ..Behind The Scenes: BabyMOB GTA3 =-.
This article really got my eyes of attention,with my kids,and helping out with everybody else kids,i really enjoy teaching everyone the value of a dollars,when they grew up to the age of asking,or telling me what they want, or what they don’t like,then i ask them a question,are you ready to work for what you want,or what you like? don’t get me wrong,i provide for my family,but the extra they want and don’t need,they got to earn it,and in a slow paste…in they allowance,they going to spent a little bit,and save a little bit…they only get allowance,when they bring home good grades, do they chores around the houses,without me remaining them ,if i remain them,of they daily duties,they will be deductive…i did that all the way up into they teenager year,when they come to me, mom what can i do to earn this or that for what?…cause they know up front if it not what they need i’m not giving, we also cut out coupon in the newspaper,we do the sales racks thing for clothing,we check all items of grocery for discount…i taught my kids,that going thru life nothing is free,you must work for whatever you want,and that you must put back for a raining day…i constantly force this upon my kids,as my parents did me…if you don’t work,you will steal,and for that,i was hard upon my kids,but fair…
Hm…
I used to be against allowance… you’d already know that I didn’t get it coming up.
But I realized that doing my job well is expected. Not speeding is expected. Not going over my credit card limit is expected. Being friendly is expected. this speaks to # 4 specifically. All of these things still get rewarded… some monetarily.
So to me.. if done in balance and with understanding, it’s cool to reward that way.
That’s the one that stood out. Thanks for sharing this HH… it’s a good foundation for a family to start.
Great list. I like # 15 the most. LOL. We did teach the kids 1 thru 14. Why do they think my forehead says “ATM” on it? LOL. It’s ok, one of the 3 gets to take care of me in my “I am only living long enough to ruin your life years”. I do have to get them to draw straws again. I did not like who picked the short straw a few years ago. LOL. I changed my mind. He who got the short stick also got the positive pregnant stick from his gf. I am a grandmother and loving it. My son is a great dad. My husband and I better take care of each other in our Golden years, but if he(my husband) ever tries to be cheap and put his dentures in my glass with my teeth in it, that’s another story. Some things you don’t share and I don’t care how long you have been married.
Note to some. Hubsand and I do our own teeth. My dad is 75 and still has his.
Love this article! I’m taking tip # 10 not only for my children but for myself too! Lol!
Thanks for the great tips! My son is turning ten soon, this is something that I can use for sure.
While we are on the topic of saving I wanted to share a website with you that can help you save money – https://www.familyzip.com/t6103/circulars-coupons-and-more6103/
I love GTA