Money Matters: Teaching Wise Money Habits

There are only three things a person can do with money: save it, give it away, and use it. As adults, we have to balance those things to have healthy finances. We must save to prepare for hard times and for big purchases we may want, and we must use money to eat and live. Giving helps keep our lives in perspective, reminding us of the troubles that others face.

Children need to know this too. They can learn by example as they watch us balance our budgets, plan our resources and spending, and give to charities. As you deal with your finances, keep your children involved. Talk to them about what you do, explaining why and answering their questions. Then help your children of all ages to separate money for savings and for charity before they spend their money.

Since I pay my young children in quarters, I have them separate them into groups of ten. Out of each group of ten, they set one aside for savings and one for giving, and with the rest they can trade four quarters for a dollar.

Here are some ideas on keeping your children involved in your finances:

1. Plan a dinner menu and build your grocery list from it. Have your child help you do this.
2. Take you child grocery shopping and have them help you compare prices.
3. Plan your monthly expenditures, including savings, giving, grocery budget, and bills. As you sketch it all out, show your child what you are doing.
4. Plant a garden or visit a farmer’s market with your child. Talk about the value of fresh, quality produce and cost effective use of our money.
5. Plan a major purchase for the family (like new furniture or a new car) with your child and set money aside for it each week.
6. Help a child plan for something they want. Create a goal chart together, and designate a bank where they can save their money.
7. Answer requests for something new with the statement, “There are lots of wonderful things in the store, but if we brought it all home, it would just clutter up our lives.”