Children and Money
Parents want to teach their children values such as honesty, kindness, and respect. However, teaching children the value of money and more importantly, of fiscal responsibility, is helpful for the long term success of their offspring. In a world that advertises and promotes an “I want it now” and “buy…buy…buy” attitude, even young children are inundadated with images of materialism and instant gratification. Despite the pleasures of luxury and wealth, most people still deep down believe that money cannot buy love or happiness. Teaching children to value and respect money is an important part of parenting and can begin during the early developmental years of a child. In families in which parents manage their money well and enjoy life, children can learn that money is an everyday reality and its value depends on it use.
Parents can foster an attitude of “smart spending” by incorporating money management skills in the home such as teaching children to live within the family budget and, perhaps, even have an allowance system. Parents can set up a reasonable amount for their children’s allowance based on age and ability and explain that they will be responsible for their own money and spending. Furthermore, insisting that a portion of all monies, whether from allowance or other sources, should be saved is a good way to teach responsible saving.
Teaching children about operating on a cash basis, that is, to save until the required amount for purchase has been saved, helps foster a sense of fiscal responsibility and delayed gratification. Very often young adults enter college or first jobs unaware of the pitfalls of credit cards and parents discover that their children do not know how to earn and maintain good credit.
Teach children to live within a budget, pay bills, and ensure future financial security but also allow them to set aside money for pleasure. No matter what the children’s future income is, this plan can be a workable pattern. Children who learn early to live within financial boundaries can feel more in control of their lives. If financial problems or setbacks ever occur in life, they can better cope with these stresses and work toward re-balancing their spending habits. Remember that there is a relationship between money, motivation, achievement, and quality of life. Begin teaching children early the value of money and sound financial knowledge and remember that parents should model healthy money habits at home.
