The best way to teach kids about money

[lorraineb]

If you can do this with your kids, you have done well:

[travelgreen]

The question that I have is how do you go about doing that when advertising is all over the place telling your kids the exact opposite? I understand the concept that this is what I want to do, but I don't know how to put in place a teaching method on a daily basis so that I get this as the end result. How do I go about doing that?

[moneymaker1008]

I think, more than anything, kids learn from example. So if you don't spend a lot of money, but you still do fun activities and have a happy family, they will learn.

[snafu]

We never found it difficult to teach DSs about money. They've had age appropriate 'chores' as preschoolers, and once they understood the principal of exchanging labor for money we added paid chores on top of those done as family. By the time they could walk to elementary school on their own, we'd added an 'allowance' and a list of things it covered. If they spent it all on 'wants/treats/toys' they missed out on events. There was a possibility of earning money but that was tricky. Lucky for us, DS 1 was a 'planner.' He had his grandfather's knack of understanding future needs and found it easy to save for goals. I think he dragged his younger brother through the process.

For example, the 1st favorite event in elementary was going to Saturday matinee at an old fashioned, neighborhood theatre. Admission was ok but the real cost was popcorn &, soda. They persuaded the owner to give them vouchers in exchange for cleaning the debris after the kiddies matinee before evening adult theatre. They delivered flyers to pay for part of sport activity costs and delivered AM newspapers in the summer [ghastly experience for parents].

Both DH and I did chores at home and worked all through high school so it seemed simple. We paid for clothes but our guys paid the difference between jeans/sneakers/jackets and preferred brand products. We bought cars but they pay the differential for under 25 y/o driver and mostly contribute gas. They experienced mom's wrath + consequences if they brought my car back on 'fumes.' We've explained financial choices and they've participated in decisions. I think they believe we're 'poor' compared to their friends.

[Jerry91]

Home is the first school for any kid. He or she will learn what he sees his/her parents do. So, if the parents are careful enough about saving money, the kids will also develop the same habit. One should involve kids while planning budget. You can explain little nitty-gritty’s of budgeting so that he or she understands what they are doing!

[Barclay]

I think it's very important to educate them on salaries and career fields as well. They need to know how much teachers, attorneys, engineers, firemen, etc earn. A lot of graduates are entering the work force with $100K + student loans and potential salaries of $30K. It's getting a little ridiculous and it puts them in a giant hole before they even receive a paycheck.

[coffee]

I have 2 friends with 3 kids each. They make fantastic coin. Both in the 250k range. One guy buys a new car every 10 yrs and makes it last, t shirt, jeans, nice home (not a phenomenol one) cuts his own grass, does his own repairs and made the kids work McDs in high school. The kids are good with money.

The other guy is even more down to earth. Buys used cars and makes them last forever, kids worked in high school, does his own repairs: even the roofing. Kids are good with money.

[Roger122]

happiness makes you rich

Hi All

This is true that happiness makes you rich by heart but in today's era people are living for money only even they don't have time for their family, friends.

So according to me, we should not live for money. Money can't buy happiness. Happiness gives you everything.

[Snydley]

I have always been wary of commercials and I am a member of the campaign for a commercial free childhood (CCFC). So when DD was little we limited her commercial exposure and when one was on I would occasionally say things like "another company trying to convince me to buy something I don't need so they can have my money!"

I'm amazed how much that line of thinking stuck with DD, now 10. When she is watching TV she sometimes makes fun of the commercials, saying "blah blah yea like I gotta have it!" This, in addition to our lack of 'keeping up with the Joneses' has been a very good influence I her I think.

We were as Disney World in a gift shop and she was considering using her own money to buy a pair of Mickey ears for $25. She ultimately decided against it, saying that she could probably get the same pair on ebay for $8. She never bought the ears on ebay either.

[Smallsteps]

I believe that honesty and walking the walk not just talking the talk.

I have observed many examples of What not to do. both my daughter in law and son in law were examples on different ends of the spectrum of what NOT to do
1st group lied about their seriousness of their finances and incurred lots of debt to look the part.... d in law had to learn a lot.
2nd group lived by the seat of their pants no stability no safety net always thinking it would somehow WORK out. moving at last minute staying one step ahead of collection.

I was out with my daughters family at a zoo I watched as a example unfolded before my eyes a mom whose "wealth " of body art showed where she invested hundreds or thousands of dollars........................................ told her child they could not afford a very modest souvenir I just wondered if her child will ever figure it out what her parent felt was affordable and what was not.

[Sam1000]

I don't have children of my own, but I once read about a father who taught his kids how to manage money very efficiently. His child happened to be interviewed by the Brendan from Humans of New York, and the photo and caption was as follows:

“Every week I get one dollar for allowance. Then I get to choose the section where I put my dollar. There are four sections: spend, save, donate, and invest. If I put a dollar in the ‘invest section,’ my parents give me two extra pennies at the end of every month. I’ve only used my ‘spend section’ twice! I have way over $10 in my 'invest section.’ I used to have more but I took some money out and put it in my 'donate section.’ We used to it to buy food for people who don’t have much money in their 'spend section.'”
Personally, I think that's an amazing way to teach your kids the value of money as well as the importance of giving back

[disneysteve]

told her child they could not afford a very modest souvenir

So often, we say "can't afford" when what we really mean is "choose not to buy". Those are very different things and we need a good way to communicate that to our children. Obviously, with very young kids, "can't afford" is quick and easy, but for older kids who can understand things on a deeper level, we need to talk about priorities and values and why we feel it is more important to set money aside for other things like vacation or college or our next car than it is to buy a souvenir or cotton candy or new video game.