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Value of Money - How to Teach Children
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Children start learning about
money and how they value it early in life. They
learn to be stressed about money if the adults in
their life are stressed about money. Or, they learn
"money grows on trees" because they get everything
they ever wanted and 'then some'.
Recently, I had the opportunity to visit with
friends whose children have grown into
self-supporting adults. I wanted to know how they
taught their children about money. It was
interesting to hear each family tell stories about
what they believed helped their children learn about
money.
One couple helped their 8th grade daughter open a
checking account and had an allowance deposited
(like getting a paycheck) each month. The amount of
the allowance was jointly decided on by the parents
and daughter. It was determined by money needed to
cover clothing, activities and other routine
expenses. Their daughter learned about balancing her
checkbook, ATM fees and overdrafts while having
guidance from her parents.
This same eight grader opened a credit card account.
This was an opportunity to teach about late charges
if the bill did not get paid by the due date and how
interest can accumulate, all while these amounts
were relatively small. These parents did make it
very clear if the balance was not paid by the due
date she would lose the card.
One family used eating at restaurants as a way to
teach their children about the value of money. When
the check came to the table, the children added it
up to make sure it was correct and figured out the
tip. Then the children would bring the money to the
cashier.
In one family pizza was always the Friday night
treat. Dad would only let them order pizza if they
could come up with a pizza coupon. There were always
pizza coupons to be found in desk drawer by the
phone in this home.
Another family planned their vacations with their
children. They let them in on how much they had to
spend on lodging, transportation, meals and
entertainment. They showed them choices available.
This helped their children see the trade offs such
as a week of camping versus a shorter visit to
Disneyland.
To make saving money an incentive parents in one
family offered to match savings. This worked well to
encourage their children to save a portion of their
allowance or save all or part of gift money from
grandparents for something special they wanted.
On turning sixteen a son in one of the families
wanted a car. His parents were agreeable, if he paid
for it. After weeks of looking and not coming up
with an affordable solution, their son thought of
calling family friends who had recently purchased a
new car and hadn't sold the old one. The good news
was, the car was for sale. The bad news was it
wasn't running. For a $1 and towing fee, the car was
his. He used savings and his own income to get it
running. The parents have fond memories of their son
and his friends hanging out in the car parked in
their driveway for a full day even though it was not
drivable yet. The car became a family legend and the
son learned about the value of money.
These stories show how life on a daily basis offers
many opportunities to teach the value of money with
regard to choices and trade offs. It is important to
stick to boundaries originally agreed upon. It is
easy out of love or just less hassle to take care of
money mistakes children/teens make. Instead,
acknowledge their dilemma and ask them for their
solutions.
Recommended reading for the next bedtime story is
The Richest Man in Babylon by George S. Clason. This
is an inspirational book about the secrets to
acquiring money, keeping money and making money earn
more money. This is a great story to share with
children. Sweet dreams and prosperity!
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Barbara Hause can be reached at 925-743-0518,
visit
http://www.barbarahause.com or email:
barbara@barbarahause.com
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It's choice,
not chance,
that determines
your destiny.
Jean Nidetch |
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