How to Teach Your Children About Money

Do your children understand the value of money?

How to Teach Your Children Financial Responsibility by Theodore HendersonIf not, there are immediate steps that you can take to help them become aware of what money is, how to earn it and how to be responsible with it.

Teach by example.
Children learn by watching the adults around them, especially at younger ages.You can teach your children that money isn’t the end-all, but rather a means to an end. Discussing with them how you save money in your family budget and explaining the discipline required can go a very long way towards teaching your children fiscal responsibility that will stand them in good stead throughout their lives.

Start Early.
Even children as young as pre-school age can learn the value of money, but remember to talk to them in terms and language they can understand.

Give your child a merit based allowance.
By tying your child’s allowance to household chores, you will help you child understand the work-reward relationship. For very young children, the chore might be as simple as picking up their clothes and putting them in a hamper or putting their freshly folded laundry in drawers or closets. They can also learn to pick up and put away their toys each evening before bed. Older children might become full partners in household chores.

Give your children financial freedom. It is their money to spend after all. However, if you notice that your child is really wanting to purchase a game or toy, but is spending most of the funds on snacks, treat it as an opportunity to discuss how that spending could have purchased the desired item and had something tangible to show for the money spent. This is also a great time to teach them about tithing at church.

Quote of the Day from The Wisdom Compass
Good thoughts are blessed guests, and should be heartily welcomed, well-fed and much sought after. Like rose leaves, they give out a sweet smell, if laid up in the jar of memory.  ~ Charles H. Spurgeon

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