I was raised a middle class kid. My Dad had been poor growing up, but he worked hard and he was able to give our family the benefits of the American Dream. We weren’t rich, but we didn’t want for a lot. Mom and Dad may have worried about money occasionally, but they didn’t let us know that they did. As a consequence of this generosity, I really didn’t understand a lot of things relating to money. At Macy’s, my first post-college job, I ran up a huge (relative to the times) $500 credit card bill in a matter of months. I just didn’t get it. I didn’t understand how to put away for a rainy day. Compounding interest baffled me. I did not know how money worked, what things cost or how to save. Fast forward about a million years and my own kids have had a totally different experience because of mine. I knew it was really important to teach my kids about money… so here are a couple of things I did that worked.
Teach Your Kids About Money by Setting an Example
You know what “they” say… they can tell you they love you till they’re blue in the face, but when they show you they love you…. ahhhh! The same can be said of money. If you show your kids a good example with money, they will live a good example with money. According to a 2020 Forbes article, “Just as important as the lessons you teach your kids about money are the ways you discuss and handle money when you’re around them. For example, if you complain about having to spend too much on certain things and then take your kids on a shopping spree, you’re sending mixed messages. Instead, make sure you model the behaviors around money that you want your children to adopt.” So remember… they are sponges… and they are watching. You teach your kids about money with everything money-related that you do. Set a good example in how you spend money and how you talk about money. Your kids will reap the benefits.
Give Kids Opportunities to Earn Money From an Early Age
I babysat Anthony Mendello from the time that I was twelve till about the age of 16. His mom was an an amazing business woman and a builder when women just weren’t. She also was no fool. As I babysit little Anthony, I was also charged with ironing shirts for her husband – and all for $1 per hour! It’s why I hate ironing to this day, but that’s a topic for another blog. But hell, I was earning my own money, and truth-be-told, I was loving it! It was a good thing. My son Joe cut other people’s lawns. My daughter Libby ran a summer camp in our backyard. They were so proud of the money they earned. If you give your kids opportunities to make money kids will start to have an appreciation for money. Think about paying them to do the extra-ordinary: raking the leaves, shoveling the driveway, cleaning the garage. It’s a great way to start the money lessons.
Create 3 Jars: Spend, Save, Share. It’s a Great Way To Teach Kids About Money
Ok, so you’re setting a good example with your own spending and speaking about money. You’re also giving kids opportunities to make some money of their own. So now what? If you set kids up for success, most times they will succeed. Showing kids what money is used for is easy with the Three Jar System. When money comes in from their little jobs… give them three places to “put” the cash: spending, savings and sharing. By doing this you create a thoughtful spender for life and you let them know that it is important to share with those less fortunate. If they make $10 perhaps they allocate $4 for spending, $3 for saving and $3 for giving. When the Share jar gets a bit full, help them chose a charity that’s meaningful to them or your family. It’s a HUGE life lesson that can’t be under-estimated. Three jars is so easy and can be comprehended by all but the youngest kids.
Final Thoughts…
Some people think talking about money is weird or uncomfortable. But we all need it to live in this world. The earlier we lose the awkward surrounding money, the sooner we make kids that are smart stewards of their treasure.
If you’re hungry for more relating to money, check out my previous blogs: What to Splurge on Vs. Thrift For in Home Decor and Affordable Updates For Your Home With Thrift and Consignment Items.
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