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Budgeting Step Eight: Children and Money
I became much more diligent about money, and I saw the need for budgeting, when we had children. We set the example in all of living before our children, and money is no exception. However we handle or mishandle it, our kids are watching. And they are learning from our example.
Whether you are new to couponing or a veteran, you’ll find tips and tricks you can use for saving even more money in my new book, Saving Savvy.
When my husband Bradford and I were a DINKS family (Dual Income, No Kids), if I wanted something, I just purchased it. Critical money management qualities like good stewardship and financial restraint didn’t really matter to me. I was like a microwave oven when it came to money. Put it in, burn through it in seconds, and call it done. But handling money is much more like cooking with a crock pot—it takes patience to really enjoy the results.
Setting an Example of Patience
Bradford and I left our DINKS lifestyle behind when I gave birth to our daughter and traded the workplace for the home place. With the huge transition we made in order to be able to do that, I was already learning that I would be setting an example of patience before my family.
Since I had been bringing home half of our income, financial changes had to be made. We started making those changes at the grocery store because that was the only flexible area of our budget. Rather than just buying whatever I happen to be in the mood for, I learned to keep a list of all the things I want to make, and I wait for the ingredients to go on sale. For example, if I’m in the mood for beef enchiladas (and I’m always craving Mexican food!), I will look to see if I have the most expensive items for my recipe in my pantry or freezer. If I don’t, then I wait for a sale. I don’t want to pay full price for anything, because I know I don’t have to. Eventually, everything goes on sale. By having a plan in place, and following that plan patiently, I won’t overspend.
::Learn more about Budgeting and Saving Money HERE.
Patience is necessary for all of life: learning to wait your turn, learning to hold your tongue, and learning to save money. This is a lesson I’m teaching my children.
My daughter, now 6, recently purchased a new toy with her own money. As we left the mall, she was beaming with the confidence of successfully earning wages, budgeting carefully, then spending wisely through a series of good choices. “Now I want to save up so I can buy my brother a new toy,” she said. “I know he will love one, too.” Patience paid off so much that she is willing to do it again, and on behalf of another! Knowing that she is learning how to save, spend, and give left me beaming, too. (Read the
And I have been a constant example of how you can help those in need by working hard. You should remember the words of the Lord Jesus: It is more blessed to give than to receive. (Acts 20:35)
ACTION STEP: Begin teaching your kids these six lessons they need to learn about money. These old sayings still have a lot of wisdom for us today.
- Money doesn’t grow on trees. Offer children household jobs that allow them to earn money. Adjust the pay for the amount of effort involved.
- A penny saved is a penny earned. Show kids the value of saving money by keeping a piggy bank or jar of coins where they can save for something they want. Kindly ask generous grandparents to help you teach your children the value of money by allowing them to save for some of the things they want.
- Make do with what you have. Help kids repair items before just throwing them away. Help them be creative by using their imaginations to learn how to make do with what they have.
- One man’s trash is another man’s treasure. Show kids the value of shopping thrift stores and yard sales. Help them to learn that value is mostly a matter of perspective.
- You can’t take it with you. Give children an eternal perspective by reminding them that no one leaves earth with their possessions. Fighting over toys that won’t last or pining after the latest and greatest gadgets is not worthwhile.
- The best things in life are free. Time spent with family. A beautiful sunset. Giggling with your best friend. Remind children that the very best things in life don’t cost a thing–but they last the longest.
Ready to move on? Head over to Step Nine: Stockpiling and Finding Great Deals.
How are you teaching your children about money? Please leave your tips in the comments below!
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.
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.
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.
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.
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.