Scattered Thoughts of a Crafty Mom

Tuesday

Teaching Kids about Money

Teaching Kids about Money

Teaching your kids about money is an important lesson that should be taught early. How early? Many experts recommend starting as early as 3 years old, teaching simple concepts, such as:
  • what is money
  • how you need money to buy things 
  • money is earned by working.
  • Difference between a need and a want and making smart choices
We've been trying to teach a few of these concepts at our house.




For example:  my son desperately wanted a video recorder of his own (He had been using Dad's phone, but we had to stop that after some important stuff was accidentally deleted.)  We found an inexpensive model ($28) an a local store and told him he would need to earn and save up his money to purchase the recorder.  Since he did not get an allowance, and already had a few household chores assigned to him, I helped him come up with other ways to earn the money. (I did start him out with $10 to help motivate him...)

Some of the things he did to earn money was having a lemonade stand, watering plants for others when they were out of town and we paid him for a few "above and beyond" tasks.  He soon had enough money to purchase the recorder.  He felt very proud the day we brought it home and took it everywhere and played with it all the time.  (Until he left it out in the rain, but that is an entirely different lesson...)

Another concept we are trying to teach is making smart choices with money and the difference between a need and a want.  A great way to teach this concept is through example and teaching how to budget.

My husband is self employed in sales and we personally have been very affected by the economic downturn of the last few years and have had to relearn the importance of setting a budget and sticking to it.

Do you have a household budget in place?  If not, this easy budget calculator from Genworth Financial is a great tool to help you get started.


Personally, I babysit about 4 to 6 times a month and am saving this money for a vacation we want to take this summer.  The kids know my babysitting money is for our vacation and are looking forward to having fun on the beach this year.

When I sat my daughter down a the table to pose for the picture at the top with the big jar of money, I told her she could have 2 quarters from the jar to buy a sticker at school.  With that incentive, she happily posed for the picture.

After we were done, she asked where all that money came from.  I told her it was some of it was from babysitting and that it was my savings jar for our vacation fund.  I tried to give her the 2 quarters I promised for her posing for the picture, but she refused to take them.  She wanted to keep that money for the vacation rather than spending it on stickers...  I can't help but feel a little proud that maybe some of our lessons are actually sinking in.

Are you doing what you can to help your little ones learn financial responsibility?

As a mom, are you in control of your own finances?  I recently read a great article from Time Business & Money, called Women and Money: Why you need to take control now.  It is about being financially savvy and how we "focus on scrimping instead of investing; we rely too heavily on others for financial know-how; and we’re not always adept at translating abstract figures into concrete goals."  This quote describes me to the T!

I plan to sit down in the near future and use the some of the resources provided by A rated financial institutions, like Genworth Financial, to make sure I have all of my financial goals in order and insurance needs met for our long term retirement goals.

Do you have any more tips or tricks to share about teaching kids financial responsibility?  I would love to hear you thoughts.

Information for this post is sourced from Genworth Financial in partnership with the SheHeard Influencer Network. All opinions are mine.



7 comments:

  1. This is a great idea and we do the same in a similar fashion at home. I like the idea of a jar because you can see how your hard work at saving is paying off. BTW that is an amazing photo of your daughter.

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    1. Thank you! That jar actually stays hidden in my closet. I used to keep it in a kitchen cabinet, but my hubby found it and kept dipping into it for stuff like pizza..
      ~Jamie

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  2. I would say you are setting the right example and your daughter is learning well. She will grow into a strong responsible woman.

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  3. How awesome of your daughter!!! My husband and I are both fairly budget conscious and I hope we can pass that along to our kiddos (at 10months and 23months they don't quite understand yet). I currently teach photography lessons to a high school student and my husband and I use that for our rare date nights. My parents taught me young and it stuck!!!

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  4. We're on the Dave Ramsey plan to get out of debt and we realized early on our parents didn't teach us much about money. As parents ourselves we decided to do our kids a favor and teach them about money. Recently our daughter wanted a My Little Pony Castle. It was out of our budget for her birthday so we had her pick out clothes and old toys to sell at a consignment store. She even brought a little purse with her for them to put the money into. When she had enough she took the same purse to Target and paid for her own toy.(The happened just before she turned 5.) It helps keep the "I want that!!!" out of our kids vocabulary since they understand what it takes to get money!

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  5. Well done! These are the lessons kids don't learn in school - because they're just not taught there. As parents, we have to teach our kids what money is, how it's used, and how to be responsible in using it.

    If we teach our children well, maybe they won't make the same mistakes with money that we did!

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