Teaching Your Kids to Manage Money

Who Is Teaching Your Children To Manage Money?

Where do your kids go when they want to know something; the school bus, their friends, television, siblings, or parents? Who is teaching your kids about managing money? The answer is you, whether you know it or not.

Do your kids see you spending beyond your means? Do they see you buying something that you can not afford or do they see you making wise decisions with your money?

How often do you discuss the principles of managing money? When training up a child as described in Proverbs 22:6 “Train a child in the way he should go, and when he is old he will not turn from it.”; you must be intentional. You must have a strategy or plan that will ensure your children’s ability to succeed as adults.

Your first step is verbal communication. There are many ways to accomplish this task; set up a meeting time when you have their total attention. Times like when riding in the car or going for a walk. You can also mention this in passing just as something you read or saw on TV.

Another very good opportunity is when you are managing your own money or making financial decisions. Once again; teach your children by your own actions, not just your words.

Modeling is your second step to raise your children to be good money managers. Your attitudes toward money; bad or good, will be your children’s attitude towards money. Have a positive attitude while managing your money and you will benefit as well as your children.

Making tough decisions is also part of managing your money. If your children see you saying no when you do not have the money; they will learn to say no as well. If the money is not in the account, do not whip out the credit card!

Your kids will benefit if you are willing to say no to them. Saying no is one practical way to teach your children about money. Another very good method is providing your children with a commission plan. A sample plan is as follows:

First assign a money value for each age appropriate job. If the job is completed every day, then at the end of the week the child receives the appropriate amount for this job. If the work does not get done, they receive no payment.

The second step of the commission plan is setting up accounts (jars) for giving, savings and spending. This requires discipline, however; it also prepares your children to manage money once they become adults.

One of many goals as a parent is to equip your children to become contributing members of society. If they learn to manage their money while they are young; this trait becomes part if their character. By training your children to manage money you are not only teaching them to be self sufficient but you are eliminating a major area of parental concern on your part.

Your children will learn to manage money; it is up to you as to how successful they become!

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