To Add to the Lessons on Money Matters

Yesterday we went to the zoo on a small budget, and we got a lot of requests from the children. "I want cotton candy." "I want popcorn." "I want to ride on the train." "I want my face painted." I walked away remembering a lesson learned that I wished I had applied to our zoo trip. So here I am sharing my helpful hint with you, still wishing I had remembered my own advice.

So when going to special events (i.e. the zoo, the circus, an amusement park), give the children their own spending money. They have to balance the money between all of their wants. Then it is up to them to decide which is their most desirable purchase: cotton candy or getting their face painted? You no longer have to face all of their demands because they hold their opportunities in their own hands, and you no longer have to dealing with the whining when you say no.

I have done this before at the toy store. They each had $5 to spend, and we went through the store picking out things they liked. If they found something else other than what they originally picked, I would say, "You do not have enough money for both. Which one do you want more?" This was very successful for several reasons:

1. The choice is in their hands. They have to balance their money for themselves and decide what they really, really want.
2. With limited choices set before them, it is no longer up to us to be the bad guy. We no longer have to be the ones to say "no" yet again for another demand. They have to say "no" to themselves.
3. This teaches them the value of money. Money doesn't buy everything.
4. It also teaches them the wisdom of careful money use. Money should be used for the more important things rather than for everything.
5. When they whine about not getting what they want, you can put the ball back into their court. If they spend their money on popcorn and then discover an ice cream stand around the corner, you can say, "I am sure next time you will save your money until you know what you really want."

Money Matters: Teaching the Value of Money

Parents often say, “Money doesn’t grow on trees.” This saying is much more than an excuse not to buy the latest toys. Money’s value comes from labor. Adults have to earn it to live. We get our paychecks from the goods and services that we offer our employers, and in the same way, we give money for the goods and services that we receive from others.

Therefore, a child must learn that money is received when they have earned it. I recommended this idea to someone who was having trouble getting their teenager to do their chores, and his response was, “I don’t want to bribe her.” But if our employers did not bribe us, we would not work for them. We would find a better employer.

In earning money, children learn to balance wants with income. They can decide for themselves if the toy they want is really worth the effort of saving up to buy or if they want something else instead. No longer is it up to us to provide everything, and they learn how to make choices for themselves.

For us, I have a morning and evening routine. In the morning, they get themselves dressed and ready for the day, make their beds, and put away their pajamas. In the evening, they put on their pajamas, put away their dirty clothes, and clean up their toys. For each morning and for each evening routine they complete, they get a quarter, which could be fifty cents a day. Each week, their routines are posted on their doors.

Here are some ideas on teaching children the value of money:

1. Set up a lemonade or ice cream stand. Have them buy what they need out of their own allowance or have them pay you back from their earnings.
2. Set up an art gallery for them to sell their best artwork or arts and crafts, or have an art show and charge a small admission fee.
3. Help them offer their services to neighbors and friends for a small fee. Older children can start babysitting or lawn mowing businesses. Younger children can pick up sticks or plant flowers.
4. Plant a garden together and sell or trade your produce to your neighbors.
5. Write an illustrated children’s book together. Have it bound at a local shop, and sell it to family and friends.
6. Have a bake sale. The children can help plan, bake, and collect the money.
7. Have a garage sale, and let them select some of their old toys to sell.
8. Have a car wash.

To follow up with these activities, the book Sluggers Carwash by Stuart J. Murphy is a great story about money for young gradeschoolers.

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.”