Financial well-being May 18, 2015 By
Learning how to manage money is an important life lesson and one that can be taught at just about any age. In leading by example and teaching our kids about saving, spending, and giving at an early age, they will be better equipped to make smart financial decisions as they grow.
Setting a Good Example
As grown-ups, we have to remember that managing money successfully is not only about making good decisions, but also about setting a good example. While my second-grader doesn’t understand my bank statement, he does understand what it means when he sees us adding money to our own savings jar, thinking through purchases, and investing time in managing our finances. By keeping it simple and using everyday situations our kids can relate to, we are teaching them to be good stewards, whether it is with their money, time, or belongings.
Saving
One of my favorite baby shower gifts is a first piggy bank. I believe that all the way through elementary school, a piggy bank is a great teaching tool for kids. My preschoolers loved the sound of the coins dropping in, and now that they’re older, they understand that the heavier the piggy is, the more money they have saved.
At our home, we keep our savings goals very simple: When piggy is full, the kids get to dump everything out and count it. They set aside a little to give and a little to spend, and they take the rest to the bank to deposit into their own savings accounts. They are learning how to be responsible by saving for the future.
Spending
We actively encourage the wise use of money by teaching our kids that if there is something they really want, they should wait and save to buy it. Breaking the instant gratification cycle is not always an easy thing to do, but we have found that if they work to save up for that special toy or game, they are not only learning to be responsible with their money, they are also growing in self-esteem, not to mention learning appreciation for working hard to earn that treat! Through this exercise, they are learning the value of money.
Giving
Our kids are old enough now to understand there are those who do not have as much as us and there are those who have more, but most importantly, they understand we should always give to help others. They are learning to be generous by regularly donating to charitable organizations and by setting aside part of their money for tithing.
Teaching our kids about money management has been a confidence-booster for them and very rewarding for my husband and me. By helping them to hone the skills of saving, spending, and giving, they are learning that it pays to be responsible in life.
