Kids and Money

Hello!

How do you talk to and teach kids about money?  Well the bottom line is that they will learn what you are doing.  Whether you teach them or not you are their biggest role models and there's a 90% chance they will emulate you.  BUT having that free flowing conversation will certainly teach them some good habits that maybe are new to you too.

The first step is to confront your own stuff.  Look at all of your own beliefs, any side comments you say often, how you feel about money, like when you have to pay a large bill or receive a large amount of money, and  what do you want to pass on to your kids?

Getting clear and on the same page about what you do want to teach your kids about money is crucial.  This will guide the rest of your decisions.  Do you want to teach them that they will always have enough?  That they are perfectly capable to earn what they need for their own desires?  Do you want to teach them that how much they achieve is directly linked to how much they receive?  Do you want them to learn the benefit and discipline of saving up for something?  Or that knowledge is valuable?  Do you want to teach them that abundance is something to be grateful for?  Do you want to teach them that when one person wins we all win?

For example; if you will give them allowance, if they will have to earn the money though chores, good grades, reading books, or will they have to pay you as punishment when they behave poorly.  Is there a family fun jar?  Is there a star system?  Do you simply give money when every they need it?  All of this needs to be ironed out.  

I do think that giving an allowance is a good idea, with a catch.  It is discussed and they understand what that allowance is meant for.  If you give them an allowance then they should also be paying for some things with in reason.  I don't think it matters how much money you have, I do think its important for kids to have ownership and experience what it is like to want something and not have enough money for it unless they save; the experience of saving for something they really wanted and the joy of  the discipline of saving and finally getting it; conversely I think its also good to experience the pain of not being able to do or get something because they were not wise with their money.  That is usually a very tough lesson, that once experienced probably won't happen again.  This does require discipline on the parent's part.

Its also a wonderful experience for the child to work and earn their own money, whether they make something and sell it, mow lawns, babysit, deliver news papers, or even in this day you could teach your child to create an online business... 

I started working at 10.  I sold things from a catalog called Olympia Sales Catalog.  Of course I made mistakes, and I would only receive about $12 a month, which even at that time wasn't very much, but it was enough for me to buy the candy and stickers I wanted.   When I was 12 I began baby-siting.  And from seeing that $12 a month was not enough, I learned that lesson to save at a very early age.  I realized that I was going to want a lot more expensive things more and more.  So I created a savings plan, that I still use to this day.  Growing up my mom really couldn't afford an allowance.  I knew other kids got allowances, but for whatever reason I never felt bad or resentful that I didn't get one.  I knew how to make money, and I felt in control.  This was a wonderful lesson for me.

I knew of one guy that got an allowance plus was paid for his good grades.  Now I've heard through the grape vine that he is a horrible boss.  He did come from a better off family.  And I have no idea of what else is going on in his life.  We were not close.  But I bring this up for you to consider your values and what you would like to teach your children.  I do think an allowance is a good thing, not so much that they will be able to buy whatever they want, but enough so that they can do some of the things they want, then have that experience of choosing to save or the pain of not having enough to get what they want.  The paying for good grades?  That will depend on your values.  Do you want to teach them that there are rewards for doing what they should have been doing in the first place?  

I know of another family that pays their children per book they read and do a book report on.  I think this is wonderful and will be adopting this practice.  They choose to pay their children per book because they want to teach their children that knowledge is valuable.  The kids, in this situation are also going above and beyond what is required.  This is also teaching the kids public speaking skills, and comprehension and retention skills; all of which are invaluable.

Some parents teach their kids how to create their own businesses so that the child can provide for what they want.  I will also be implementing this practice.  It is so powerful to allow the child to dream AND create solutions to attain that dream.
Plus this is precious bonding time that you will be spending together working on their dreams.  They will learn that you are there to support them, but not hand whatever they want over to them.  You will also teach them that they are perfectly capable of getting what they want them selves.  This can be done with a really smart kid doing on line tutoring videos for other kids his age, a lemonade stand, bake sales, a dog walking business, buying things and re-selling them....  The ideas are limitless, let your child come up with the ideas.  I know you will be impressed.

Talking about a goal and the reward they will receive when they achieve their goal can also be very powerful.  The reward should be equivalent to the goal.  It could be something like a family trip, some special quality time, an experience that they really want to do with you that would maybe be a little more expensive that you would normally do, an instrument or tool that would even further fuel their hobbies.....

Whatever you choose to do with your child have a conversation and be consistent.  If you find that its not working or you want to change it, have another conversation before changing how things will go.  Its very important for the child not to be blindsided, and to experience consistency.

And ultimately it will come back to you.  Do you stress out about money?  Or are you relaxed about money?  Is money a taboo topic or something interesting to talk about?  You are the most important person in their life forever, they will ultimately emulate you.  So if you don't want them copying that bad habit, you have to change it.  If you want to inspire them to always reach for personal growth, when they see you making changes and the pay off you are experiencing they will also emulate that.

If you are interested in receiving a free consultation please contact me.  I am happy to provide tailored plans to talking to kids about money.

Creativelyjessica@gmail.com

Love, Jessica

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