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Parents and Money
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| Money Hatching and Flying... |
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When it comes to Teaching Kids about Money, the sooner the better!
Until children are old enough to earn their own money and make a living, they do not understand the importance of money management. You often hear parents say to their kids, “Money doesn’t just grow on trees”. However in a child’s mind, money comes from an ATM or their parent’s wallet. Children need to understand that money is a limited resource.
Teaching your kids how to manage their money carefully is a great skill that will assist them through life.
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Once a child learns how money works, they will become very good savers very quickly so that they can buy a chocolate or small toy “with their own money” when they next go shopping. It is at this stage that parents can start working with their child to teach them about managing money.
It is important to teach children about financial awareness before they become teenagers, because teenagers will not necessarily heed their parent’s advice.
Teach Children the Value of Money
Good financial records keep you in good financial health. It is important to start teaching your kids the importance of saving money and keeping good money records from 8 years upwards. |
Use a blank book or excel spreadsheet and include the following headings.
| Date |
Item |
Amount |
Spend |
Save / Share |
| 20/10/06 |
Weekly Allowance |
$5.00 |
$2.50 |
$2.50 |
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Use one line for each income transaction. If possible organise two small piggy banks, one each for the spend and save columns. The spend one should have an open access door and the save one should be closed off so that children cannot access it easily. See-through piggy banks are best for this activity.
Spend – Children can spend this money how ever they would like to.
Save/Share – Children cannot touch this money and should only be used for high cost items or for investment for the long-term. Also encourage children to spend at least 10% of this on those less fortunate than themselves or local charities.
It is important to catch up with your child at least once a month to review what they have done with each part of their allowance. Initial their spreadsheet if that helps with accountability and discuss with them the good and bad choices or decisions they have made.
Money Isn’t Everything
While it is important to teach children the value of money, it is also important to teach them that money isn't everything.
While money is important in today’s society, it should never be the most important value you teach your children. Values such as respect for others, empathy, leadership, responsibility, forgiveness and honesty are very important and should be focused on during their development.
Many children have grown up watching their parents work hard for money and it is important that families also consider lifestyle as a part of their family life. |
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Cashflow for Kids: (an Educational Game Designed to Teach Children the Fundamentals of Money and Investing): Kit |
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Money Still Doesn't Grow on Trees: A Parent's Guide to Raising Financially Responsible Teenagers and Young Adults
Now you can do the seemingly impossible: transform your spendthrift teenagers into financially responsible young adults.
With Neale S. Godfrey's fresh, practical, inspiring advice, you'll discover:
- How to help your teen choose his first car, the right bank, a safe credit card, a clothing budget, or a great summer job
- How much your child should work during high school and college
- Where, when, and how to leave a proper tip, find bargains, dress properly for an interview, and more
- PLUS: fun quizzes and step-by-step worksheets for you and your teen to plan and create a stable financial future |
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Financial Parenting: Showing Your Kids That Money Matters
With chapters on stewardship, giving, borrowing and lending, saving and budgeting, this resource includes lots of activities and interactive questions with each chapter. Perfect for children ages 5 and up. |
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Raising Money Smart Kids: What They Need to Know about Money and How to Tell Them
A parent's guide to helping kids unravel the mystery of money. The children of the 21st century have more spending power than any generation to date. Along with this increased power comes an unmatched curiosity about our monetary system and a greater expectation of fiscal responsibility. How can parents help their children grasp money and its role in society? Janet Bodnar, mother of three and a nationally recognized expert in the field of children's and family finances, shares her strategies for helping parents help their kids understand the power of a dollar in "Raising Money Smart Kids." |
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Kids and Money: Giving Them the Savvy to Succeed Financially
In her sharp, intuitive book, Kids and Money, Jayne A. Pearl offers scores of innovative, proven solutions for problems that concern parents of children ages 4 to 18+. Pearl talked to everyone -- from personal finance experts to professors to money psychologists to families across the nation -- and the result is a tremendously practical, helpful book for today's parents. |
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Kids, Parents & Money: Teaching Personal Finance from Piggy Bank to Prom
Practical and fun strategies that parents, teachers, and mentors in all capacities can use to teach kids– and themselves– how to be financially savvy and, ultimately, secure |
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