The goal of parenting is to raise well-rounded individuals who can be productive members of society. One of the most impactful things you can teach your child is the value of a dollar, and I’m not talking 100 pennies. Here is a list of things you can do with your child to teach them how to properly handle money.
Teaches them a good work ethic
A common word that links youth and money is allowance, but an allowance does not need to be a free gift. Have your kids earn their allowance, but do not link it directly to doing their chores. Parents do laundry, cook, clean and much more because they are contributing members of the household, not because they are paid to do so. Have a set list of chores that belong to the child simply because they are a household member. Assign monetary values to additional chores (mowing the lawn, emptying the dishwasher, etc) which allow the child to earn their allowance.
Teaches them to Spend, Save, and Give
Store the child’s money in three separate containers labeled Spend, Save, and Give. This helps to instill the values of saving money for big purchases and rainy days as well as giving to the less fortunate or ministry opportunities. Talk to them about your own saving and giving habits – about how you were able to buy that nice camera because you saved for a few months for it or how you gave money to the soup kitchen because while you had enough money, it did not come as easy for other people.
Shows them the budget
Allow them to see why only so much money is allocated to “fun” spending each month. Let them see how their clothes budget fits into the grand scheme so they can see how important it is to buy a lasting pair of sneakers over the latest trends. Give them a small portion of your food budget to play with at the grocery store to see how far they can stretch it. Tell them your budgeted number for family night this week and let them research entertainment options. Teach them that you have a specified number for each budgeted category and if they want to go over that number they must come up with the money themselves.
Sets a good example
Pay your bills on time and say no when things don’t fit into your budget. Use cash so that your child can see the value actually trading hands. Do not try to live outside your means but instead, show what certain levels of income can provide. Remember, as they say, “more is caught than taught.” The earlier you start showing and teaching good money habits, the more your child will learn.
The expectation here is not that your child will never make money mistakes, but allowing them to learn at a young age helps save them from the major consequences of adulthood decisions.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at https://www.carefinancialonline.com or call us at 251-633-7122.
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