E-Mail 'Budgeting 101 Series: Children and Money' To A Friend

Comments

1. Janelle April 24, 2009 at 2:18 pm

   I involve my (3 year old daughter) in coupon cutting. In addition, when she sees something at the store she wants we talk about needing to save our money to buy things, waiting for them to go on sale, looking for coupons etc. She now doesn’t ask me to buy her things, she has even commented something is nice but “too many pennies” for now.
2. Cathi April 25, 2009 at 6:54 am

   We have had money issues in our home for quite a few years (job loss etc.) We have never hid from our son that money is tight in our home and that we have to watch what we spend. We have discussed these issues in language that a 7 year old understands and he is aware that going to the $1 show is just as good as going to a first run. We simply just have to wait to go to see the movie. But he sees that when we do this, that mom and dad can take him 2x’s a month to the movies instead of one big outting to a high priced, first run theater..and to him it’s about quantity, not the quality of the theater. He knows that he has to save his money for big ticket items and is becoming more frugal about his “wants” versus his “needs”.

   I think by being real, and upfront with your childern about money issues or even money crisis in your home, it produces a more mature outlook on money and, I know in my home, it has made my child more grateful, thankful and GIVING to people.
3. Kelly April 25, 2009 at 7:25 am

   Teaching children about money. . .I have saved my lemonade canisters and labeled them for my kids, “Giving”, “Savings”, “Spending”. Anytime they get money for birthdays, tooth fairy, etc. we talk about putting some in giving, some in savings and the rest in spending. We do 10%, 10% and 80%. Then, they can use their spending money any way they want. The first goal of this is that they would get in a habit of giving their “first fruits” back to God. Also, we’re hoping they’ll use a lot of their money on something that breaks or doesn’t last and hopefully, they’ll learn a valuable lesson now instead of on their first big purchase as a young adult. It has also motivated them to find ways to make more money if they are saving up for something. We were motivated to do this, especially because my 1st grader was talking about economics at school(needs vs. wants, definitions like consumer, etc.) It made the lesson tangible and real-life for him as well as my 2nd grader and preschooler.
   – Jill P.
4. Karen April 26, 2009 at 2:54 pm

   Teaching children about money and credit:
   Fortunately my children have been blessed and are just now seeing money struggles for my family. I think this is both a blessing and a curse.
   My children have always gotten what they wanted, either immediately or after waiting a while. I cannot think of 1 thing they have requested and not received. I think it also makes it hard for them to completely understand because most of their friends and peers are extremely well off and have not often heard the word “no” to their requests.
   I have a list of chores which are age appropriate and they are paid per chore.
   They use this money for anything they desire: clothing, eating out, gas money, movies, toys, etc. Portions are saved, given, and used at their discretion. When they use their own money, they don’t want as many splurges. They say, “I don’t really want it that much.”
   My children are also responsible for chores because that’s their family duty as part of our household. Not every chore is rewarded with money, some are rewarded with a “thank you” and a hug.
   The oldest son has a car and is solely responsible for the insurance, gas, and upkeep.
   I think it’s important to teach them to give back to others in need. Portions of both family and children’s money is spent starting around October until January on different projects. These are all “hands on” so they give of both their time and money.
   Our money situation is discussed openly and honestly, but with the statement that we will always have “all that we need, but possibly not all that we desire”. We discuss our budget needs and they help with the shopping and couponing. If we purchase on a credit card, we pay the bill asap.

   More families are struggling now that ever before. This has opened opportunities for sharing and giving that might not have taken place in good economic times.
5. Derae April 28, 2009 at 10:50 am

   I have always been tight with money – which is why I have plenty saved up for a “rainy day” or for our next move up into a house. My children know that we don’t buy things just because we want them and we have to decide what we’d rather have. I continually have them make choices between things so that they get to experience the “opportunity cost” decision making process – would I rather buy this toy or see this movie? My kids seems actually pretty comfortable with hearing “no” or “maybe later”. But we do talk a lot about what we are saving up for – which right now is a house (we live in a condo) so that we can have our own yard and pets someday. The girls are only five, so it’s easy for them to be satisfied with little things and a dream of the future. I really appreciate hearing about teaching kids to put money into different buckets. When they get older and I actually give them an allowance, I want to try that.