Teach Them Responsibility Concerning Money

February 3, 2009

It is never too early to teach children responsibility concerning money. Even very young children are given small amounts of money. Teach them how to think wisely – Biblically about their money.

Teach them the value of a dollar by earning it.

As children grow older allow them ways to earn money, and then require them to divide and use their money wisely. You’ll probably have to sit down and explain how to do this several times.

In our home we do not give allowance for chores. Everyone has their chores they are responsible for because they live in this house, not because they are going to get paid for it. Who pays mom and dad to make their bed or take the trash out? Who pays mom for shopping for groceries, or changing a diaper? Who pays dad for changing the oil in the car or cleaning the gutters? There are things we have to do that we do not get paid for, that is just a fact of life.

All of that being said, there are ways to allow the children to earn money; there are always extra jobs around the house that need to be done, for example: When I want a new flower bed, this usually requires rocks, soil and mulch. I am willing to pay for this, because this is an extra for me. There will always be opportunities to earn a little cash from neighbors and relatives. When Granny comes to visit, our kids will wash her car and she pays them. As children grow older there will be more and more opportunities, but that also comes with more and more financial responsibility!

Teach them to tithe.

Teach them to give their first fruits ($) of their labor back to God, this is a minimum of 10%. Train this discipline early in life, it is so important! Allow small children to experience the joy of putting the tithe check in the offering plate, explain that this is it part of our worship when we honor God this way!

Teach them to give.

Teach them to consider giving to someone less fortunate, whether it is to an elderly family member that needs help (we take care of family first), a missionary, or to a sick person needing help to cover medical bills. Perhaps they could save a percentage of their income until they find a worthy cause to give to. Teach them the difference between someone truly being in need and someone who is suffering because of laziness.

Teach them to save.

Next to tithing this is probably the hardest thing to teach, yet it is one of the most important aspects of managing money.  Kids usually think of today only. They want what they want, and they want it now! Don’t we all? Divide this savings into short term savings and long term savings.

One of my favorite sayings is from Dave Ramsey,

“Maturity is pleasure delayed.”

Teach them to spend wisely.

This is part of why children need to earn their spending money; they NEED to understand that money doesn’t just appear and that it is worked for. Do they want to work for mom for 5 hours making a flowerbed just to spend it on a soda, popcorn and a movie? Let them buy some foolish things, but really teach them to spend wisely, buying things that will last a while.

Teach them not to embrace debt.

They need to spend less than they have in their spending. If they do not have the money for something don’t let them borrow it from you. It might be a great deal, but life is full of disappointments; this will help teach them for their adult life that sometimes the answer is “NO”. If they don’t have the money for it now then it probably isn’t best for them to have it.

When they become teens:

*Let them save and buy a car with cash, it can be done!

*Let them buy the majority of their own clothing, make up, etc… they will become smart shoppers very quickly!

*Let them share in any struggles you may be having as a family, this is real life! Show them how God meets your needs, it will grow their faith.

*Let them see how you pay the bills, your account book and your check book. Let them write out checks for you. Let them go in and make payments for you (with your money).

*Require them to keep their own account book.

*Explain how loans work and why to avid them as much as possible.

*Let them be responsible for continuing their education, at least in part.

Remember you want to raise RESPONSIBLE and wise adults!

So teach them, let them learn theses tough disciplines while they are young! Don’t shield them from real life.

We have this game and the kids have played it quite a bit.

   Dave Ramsey is our FAVORITE person when it comes to finances. Going through his Financial Peace University is worth EVERY PENNY!

He also has a great radio show you can listen to online: http://DaveRamsey.com

Thursday we will be offering Olivia’s new e-book:

There will also be a few BONUS gifts, I can’t wait to announce them!

Topics: Money Management, Responsibility | 2 Comments »