Kids and Money part 2
There are so many ways we can start this discussion, but the best place to start is with giving; yes! I said giving. We have to get our children to focus on others by ways they can help people with their time and/or financial resources. When we begin to give, it really puts our hearts and minds in proper perspective. It’s not all about them and it teaches them selflessness. When we give our finances to help others it really teaches our children the value of a dollar and they are more willing to choose wisely how they will use their money.
Now, let’s talk about saving! Some people think it doesn’t matter but it does; it’s important, considering that the majority of adults don’t have $1000 saved. Here’s how you can start teaching your kids about savings. Buy your younger children a giving, saving, and spending piggy banks. This will encourage them to have a budget plan at a young age. Teach them what percentages and amounts go into each. They can give ten percent or more, Spend up to twenty-five percent and save the rest. You’ll have to adjust the amounts according to their age. It depends on some factors like how old your child is and if they have an income, so these percentages are a base line and should be adjusted by the parents .For example our son who is twelve cuts the grass and he is learning at a young age how to divide up his earning into those categories. He already has a savings account and he is very proud of that. Saving becomes easier if they have a budget plan in place. He is learning at a young age how to be responsible with his money. This helps them be better equipped for the future. Saving is important for financial freedom. When they learn to save what they earn they can make better choices on what to purchase and they appreciate the item much more. Proverbs 13:11 says: “wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” We have to teach our children how to work hard to earn money and how to be faithful with the little they have. No allowances! It is better that we do not just give our kids money, because we have to teach our kids to work so that they will earn money. Chores and jobs are different and they have to understand the difference. You as the parent, decides what jobs they get paid for; and what are chores; they do not get paid for. In life we do not get allowances; we work and earn our pay and may get a bonus if we do well. They will succeed if the follow this simple lesson. This simple method of financial training helps them become better equipped for the future. Wise plans now, makes wise choices later; remember they learn from our example so let’s teach them well!
Our children must learn that they can’t have everything they want and that is okay. They have to know the difference between a want and a need. We have to teach them not to be impulsive buyers and not to overspend. They have to stick to their list of purchases. We have to teach them to put others before themselves. Tell your children to just say no to credit cards and this will help prevent debt. Learning these lessons at a young age is important for their financial freedom. They will become great managers of their needs and wants without going into debt.