Posted by Gail | Filed under Kids & Money
Want to know the top 5 things you should drill into your 4-10 year olds to make them smart about money?
1. Money is an exhaustible resource. When you use it, it’s gone. Make smart choices about how you use it. That means realizing that when you spend your twoonie on a popsicle, you forgo the can of pop or bag of chips.
2. Save something. There’s no lesson that will teach this better than the lesson of habit. You make your kids brush their teeth, right? Make them save too. Saving 10% is enough. It’s a hard habit to break and one from which they’ll reap huge benefits.
3. More money doesn’t make you a better person. Some adults would do well to learn this lesson. The amount of money you have has nothing to do with the content of your character. The kinds of shoes you wear, the brand on your clothes, the type of car your parents drive, the size of your house all have nothing to do with how smart, sensible, kind or fair you are.
4. If you want more money, get creative. Entrepreneurs are born from the desire to be in control and make things happen. Encourage your kids to set up lemonade stands, wash cars, walk dogs, deliver papers, fetch groceries, weed gardens, shovel snow. Don’t insist they save half. (Do you save half?) Apply the normal savings rules.
5. Make wise choices about what you do with your money. This requires that you give them some: that’s called an allowance. It’s not free money. It’s the money you normally spend on them, put in their hands so they can learn how to make wise choices. Over time they’ll learn that if they blow their money on crap then they won’t have it when they really want it. Once you start an allowance, keep your hands out of your wallets.
Are you giving your kids an allowance? And what kind of example are you setting –what lessons are you teaching — as you go about your day-to-day life?