We must have as our purpose that our children suffer less with the issue of money. We need to be intentional in trying to get them to understand the relationship between money and work. They have to be very clear that the money does not come from an ATM.
It’s sad, but in the office I met people who, at age 55, had not understood the relationship between money and work. Imagine the amount of problems this can cause a person. The worst thing is that financial mismanagement not only affects the messy, but the whole family when the time comes to get it out of the hole.
I want to share some specific and practical points for our children to start exercising or developing their savings and administration muscles starting the new year.
New Year’s resolutions for young children (ages 4 to 12):
The best way to teach our little ones the concept of money is to make a list of “chores” to earn a little money. No more Sunday or countertops, free money, just because they are breathing. From now on, when they do a task on the list, they are paid and if they do not, they are not paid. Then, when they receive their money, they have to be taught three things.
● Save – Now when they say “I want that”, just ask them, do you have money? I promise you that all the drama they do when they walk in the store is going to end.
● Spend – It is different when they buy with their money, because it hurts. In addition, they learn about taxes. You can motivate them by telling them that they will match their savings when they reach a certain amount. (Be sure to comply with them).
● Giving – One of the most shocking things we can teach you is generosity.
I recommend that you use three envelopes or piggy banks to separate the money. When they go to the store they take the envelope to spend and when they go to the church they take the envelope to give.
New Year’s resolutions for teenagers (ages 13 and up):
Teens also need to make that link between money and work. Now that they are older they are going to want more expensive toys or clothes and they themselves need to raise the money to give themselves their whims. When you receive your money do the following:
● Manage your own budget – Parents: give them the money they already planned to spend on them at the beginning of the month and allow them to buy their own clothes or pay the expenses that were budgeted.
● Save your own emergency fund – If your children break their tablet or phone, don’t be so quick to dry their tears with a new device. They, with their own savings, can repair or replace their cell phone.
● Open an investment account – Losing your fear of investments at this age would be a great tool. This money could be used later to buy a car or even a house, depending on when they buy and how much they invest.
The fact that parents live this is the best lesson because
The words are blown away, but the example drags. Can you imagine what your life would have been like if you had had this understanding from a young age? Involve your children in your financial plans. It can be even fun and easier if everyone is involved in the family plan to get out of debt. When we all know the “why” of the changes, we achieve more because we all push towards the same place. Remember: the words are blown away, but the example drags.