Saturday, October 27, 2012

Day Twenty-seven- Dollars and Sense

It doesn’t take children very long to catch on to the concept of exchanging money for goods and services. The value of money, however, is another one of those on-going conversations. There are a lot of resources available to help teach children about financial matters. It is definitely worth the time and effort to explore some different approaches so you can find the one that most closely fits your family’s values and philosophy.

Some things to consider: Will you pay your kids an allowance? Or will they get paid for completing certain chores? Under what conditions might they lose these privileges? This can all get complicated very quickly, so try to utilize a system that is easy to consistently maintain and flexible enough to be age appropriate. Whatever method you choose, make sure that you are getting some money into your kids’ hands so they can start learning to manage it.
From the time they were very young, we advised our girls to give 10% (tithing), save at least 10%, and then they could spend whatever remained. We also encouraged them to plan for their purchases rather than being impulsive. We showed them how to compare prices so they could get the best value. They learned how to save their money for more expensive purchases. This process helped them to learn delayed gratification, an extremely important concept that many adults have yet to grasp.

Finally, make sure that both parents are in agreement regarding money matters. A united approach will reduce confusion and discourage manipulation. This can be a very sensitive area in a family, but it is also a crucial one. Make it a priority to prepare your kids to manage money.

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