Chances are, you picked up your attitudes about money from the adults around when you were a child. Phrases like, “Make it last. We can’t afford a new one,” or, “Let’s go ahead and buy this. We can put it on a credit card.” probably made a lasting impression on how you view your own money management.
Today, your children are taking cues from you, and it’s important for them to understand where money comes from and how best to earn and spend it. From money managing experts, here are five ways you can be sure you are giving your kids the right money messages.
- Make It Tangible – Debit and credit cards, Venmo and home delivery are all useful tools. But they obscure the way money is exchanged from your kids. Give them some tangible practice. Ask your child to count the change in your piggy bank-in exchange for a 10% commission. Take them to the store and ask them to read the price of each item going into your basket. Point out how much you can buy for $10 or what it costs to buy the ingredients for one family dinner.
- Make It Visual – Have your kids count the money in your wallet. That is how much you have to spend. If you pay your bills electronically, show them how each bill you pay reduces the money in your wallet. When you write a check, explain how that does the same thing.
- Explain Why You Work – Your children see you leave for work every day or attend Zoom sessions at home. The next time they ask why you can’t play with them, explain how the money you earn from working at your job helps to take care of the family.
- Find a Simple Explanation for Budgeting – Your child asks for an iPad or a new toy, but isn’t in the budget. Instead of just saying no, help them understand that money only goes so far. “We can afford soccer camp or the iPad, but not both” is a good way to make the point that prioritizing is a necessary option.
- Encourage Them to Save – Giving your kids an allowance in exchange for jobs around the house, and encouraging them to save part of that allowance, is the easiest way for children to learn that working equals money in your pocket and a means to pay for what you want.
