7 Ways you Can Teach your Kids on Money
Having two daughters and a limited budget should move any dad to start thinking of creative ways on how to teach his kids about money, savings, and generosity. Here are 7 ways we can teach them that:
1. Reward System.
We made some chores that if done will receive a reward. Not all rewards are monetary. Household chores are not given any financial rewards but doing something beyond what is required and expected of them does. Example:
– giving daddy a massage.
– helping do the laundry.
Don’t give rewards for promised future behaviors. Only reward when the goal is accomplished.
2. Clarify where you are now.
You have to be open about where you are now. Do they know that there are things you cannot afford. Teach them instead to pray and believe God for it and at the same time if it is something the family agree to purchase but have no money yet, make a savings plan to be able to purchase it in the future.
3. Teachable Moments.
One of the best moments to teach your kids about money is in the toy store. Where most kids cry because they cannot get what they want, kids must understand some things you don’t need to purchase and that some things money can’t buy like contentment and delayed gratification.
One of my friends taught their kids the envelope system. He used business terms in teaching his kids on how to understand and handle money. Now his kids have their own savings and they are able to save up and even start a small business at the age of 12.
I was also able to attend Raising Money Smart Kids by the Faustos. It was really enlightening to see how when we train our child young, they are able to embrace important financial principles and carry it on till they grow older.
4. Learn Business.
Teach them by letting them do it. Encourage your child to take a summer job, a part time job or even organize a garage sale. When I was a kid, my parents would expose us to our family business. At first, I didn’t understand why. All of my friends were having fun while I was in our family business. Now, I fully understand what my parents were instilling.
Show your kids that their is power in giving back. Teach them how to set aside a certain percentage of their income for God (tithes), and for giving (offering), giving to charity or even giving of their toys to the less fortunate.
7. Thank you Economy.
Kids must appreciate what they have. Teach them to treasure the stuff and the money that they have. At the same time, show them that the richest people in the world are not people with huge bank accounts but those who have solid friendships and relationships.
If you want to teach them more, I have a great resource for you. I personally bought this for my kids.