My husband and I are passionate about teaching our kids about money while they’re young. This is something we both wish we’d had more coaching on before jumping into marriage at ages 19 and 20. We made some really bad decisions early on that I wish we could go back and change. I talk a little about it in this post. I remember the first time we couldn’t pay off our credit card in full when the monthly bill came. The balance was $600 and I freaked out. I talked to a friend about it and her comment was, “$600? Girl, I wish that’s all we on a credit card!” I wish SO much that I’d cut up the card right then and there. It would’ve saved a lot of hardship later on.
After going through Dave Ramsey we agreed we needed to be intentional about teaching our kids so that hopefully they learn from our mistakes. We started out by ordering the Financial Peace Jr. kits (and by the way, I’m not getting paid for this, just want to share our experience). We liked the idea of having them “Give, Save, Spend” and having chores to earn money and chores they do just because they’re part of the family. We’ve pretty much stuck to this model over the last several years. Stats show kids don’t do as many chores as they used to. Parents just don’t require it. We believe that it teaches our kids responsibility and a hard work ethic when we give them chores to do. Not to mention it teaches them life lessons they’re going to need later on. My ten-year-old son already knows how to do his laundry and how to cook simple meals. All of my kids know how to clean a toilet, change their sheets and run the vacuum. And they’ll be better for it.
Earning a Commission and Saving
The kids earn a commission for several of the chores they do and this is where teaching them about money comes into play. We are Christians and believe in giving a tithe to our local church so we’ve taught our kids the same. After that we have them save 10% of their earnings. We stress the importance of saving. Our local credit union recently offered an incentive for kids to open a savings account – they offered to match their deposit up to $25 for opening a new account. We took advantage of the offer and had our son sign up. He loves getting the monthly statement in the mail showing his account balance. This has been huge for him because he’s a spender! The rest of the money after tithing and saving is theirs to do with what they want. My younger two have more of the savings “gene” in them. If there’s something they want at the store they’ll only take the amount they need to purchase that item so that they aren’t tempted to spend the rest of their money – I love it!
In subtle ways, we’re already teaching them to pay cash and wait patiently to save up for what you want. To be content with what they have. Which has kind of become a lost art! The school they attend also teaches Dave Ramsey’s Foundations curriculum, which is awesome. The more information we can give them about handling money wisely the better.
How about you? How do you go about teaching your kids good money habits? Comment below!
You Might Also Be Interested In: