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Why is teaching kids about money important?

Finance, budgeting, and saving money are three of the most important perceptions for Teaching Kids About Money.  It is sometimes overlooked until they are grown.  In the meantime, they have been given whatever their little heart’s desire. Will they be able to discipline themselves after having it all?  Teaching kids about money sometimes gets lost in the day to day living as life is busy.

It is hard to say no to the little ones or the teenagers in your home when they want to buy out the store when you go shopping. More than likely you deny yourself; just to make them happy and therefore you are giving an opportunity for teaching your kids about money.

It is surprising that the schools do not teach children beginning in the first grade the basics of finance and saving money (simplified of course) given the importance of it.  One of their priorities should be about teaching kids about money, and the value of it.

When you realize you haven’t been teaching kids about money:

  • When a child has left home and returns because they cannot meet their basic financial needs and want to borrow money, or think you still owe them a living; (no harm meant); something went wrong somewhere. This is usually when you find out that somewhere down the line you did not teach them how to budget their money and finances well.  A day late and a dollar short!
  • When you child makes sufficient income to take care of expenditures; yet come to mom for additional funds to pay the utilities.
  • When they buy the most expensive car, clothing, and personal items, but can’t pay the rent.

We often teach them to excel in everything but “how to be conservative with money.”  Teaching kids about money means when they earn it; they will more than likely appreciate it.

Hints for successfully teaching kids about money:

  • First they have to learn that money is not free (even as a toddler); it doesn’t grow on trees.
  • Teaching children individuality; they cannot model their life after another person when it comes to money, or anything else for that matter.
  • Teaching children how to value money, and what it can buy, and what it cannot buy.
  • Teaching them why it is important to save part of their allowance until they receive it again.
  • Teaching them having money does not bring happiness; but it bring financial security if you have it.

Nothing wrong with having money, but….it is still wise to teach kids the blessings and the downfalls of having money.

A lot of children have grown up in a click or society; with plentiful funds to do what they want.  Some parents are wise enough to know that it is much easier to spend money than it is to make it, or save it.  They not only teach their children to be responsible with the allowance they are given, but they teach them to work, and save some of it so that it will accrue to larger amounts.

Some children have an inborn ability….that is how some adults who did not grow up in wealth; become wealthy:

Socks 1Example:  I have a friend who was a banker for many years, she was raised to conserve and worked hard within her family.  She did not have children for the first 10 years of marriage. Her first born had a natural ability to save.  When his parents gave him allowance, gifts, or he received extra money for birthdays etc.; he would put it in a sock in a drawer.   His mom gave him saving bonds for Christmas and at different time.  When he graduated from high school and went to college he had saved well into 20k.  Not a lot you say, but it is a lot for someone who is 18 years old and has saved instead of spending.

Of course now he is grown with children himself and he owns his own business which thrives and he has more business than he knows what to do with.  His wife is a CPA and all is well.

This child had and still has an innate ability or quality to save.  He still amazes his mom.  But, yes he was taught responsibility and it matters to him.  He knows the value of money, he knows he is better off with some in the bank, and he knows that money gets you places that you can’t go without it.

Oh, I almost forgot; he would take his lunch to school, saved his lunch money and no, he did not have to…. this is one step about teaching kids about money; if they are not naturally inclined to do it own their own.

Do we get it?

 

P. S.  Please note that no one knows all the “how to’s” to help children be more responsible with their money. Please tell us your experiences.

 

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