Money lessons – family style
You have valuable lessons drawn from your own experience to teach your kids, right? Nowhere is this more relevant (and valuable) then teaching them about money. This holds true from learning to count it, to understanding debt, to being able to attach value.
Some of these lessons are a little easier to impart, simply because they are more concrete. Some are a little more challenging, because of the abstract concept.
So how do you go about teaching these lessons?
Patience is a good thing to have, no matter what. However, when it comes to money management later in life, patience is key (think buy now pay later vs. save up first).
Good things come to those who wait- and in this case, it means control of finances. For example, if your child wants a specific toy or outing that is expensive, set out a plan over time. You will agree to chip in part of the cost, and they can “earn” the rest, either through odd jobs around the house or through paid work elsewhere. Use something visual (a jar, a chart, etc.) to track progress.
Have your kids throw a party. Set a budget and have them organize activities and snacks. Help them manage the budget around those items. They will see what it is like to work within a budget for something that is fun to them- and realize that it can be done!
This one is win-win, because you get to purge some of your belongings alongside teaching money lessons.
Have your children go through their belongings and decide what they can get rid of. Have them actively participate in setting prices (talk about ‘market conditions’ and appropriately pricing things) and tagging the items. Then on the day of, have them be on the front lines, collecting money and making change.
Afterwards, tally your earnings. For an extra money lesson, have them donate the proceeds to a charity of their choice.