Children and Money
Most parents want their children to have a healthy relationship with money. All kids should learn to handle their allowances wisely, how to balance their checkbook, how not to abuse credit cards and to be the master of money…not its slave.
A good relationship with money goes beyond being a money manager. Our kids need to grow up to be compassionate and caring. They should learn that there are more things they can do with their time, effort and money than just spending on themselves.
If our kids learn to help make other people’s lives better it will make their own lives better. A Money Magazine study discovered that people who help other people are happier with most aspects of their lives versus those that don’t. You can give money to charity, but, the study showed donating things or volunteering works just as well. Kids may not be able to give money but they can give old toys to shelters or give time at a food bank. Our kids get something psychologically when involved in helping others. Where does it start…? With you. Being a charitable parent in front of kids helps form charitable kids. In fact, being a financially intelligent parent in front of our kids helps foster financial intelligence in them.
What are you subconsciously teaching your kids about money?? That money is something to be loathed and you must spend it all immediately!! That you should be a “miser” with money and hoard it or, there is a balance to money…an emergency fund, a set amount to save for future responsibility, a set amount to save for future purchases and, lastly, to live within your means.
Are you teaching your kids to demand instant or deferred gratification? You can get your kids started in volunteer activity after age four. Explain to your kids that there are children whose parents do not have the money to buy toys. Suggest the kids gather up their toys that they are “to big for” and put them in a bag. Then, together bring them to the shelter.
Even your teenagers can learn charity. Have them volunteer at say a Habitat for Humanity building program or other programs sponsored by your church.
Knowing that you are doing something worthwhile and significant brings a sense of contentment that is a real “high”.
A personal note from Paul Ferraresi: At an early age my parents had our whole family volunteer and help out people less “fortunate” than we were. It made us all realize as kids how great we had it (even though we did not have all the best things in life. Oh yes, we ate well…naturally, being Italian, but, we never had the best clothes or trinkets).
The lessons we learned as kids was “I cried that I had no shoes…till I saw the boy with no feet!!!”
Interesting Facts:
- 73…The number of years before 2006 when the nation’s personal savings rate last sank to negative 1 percent or lower.
- 60…Percentage of gross income saved monthly by an “Extreme Savers” couple. (Profiled by CNN Money).
- 40…Percentage of workers who say they are not saving for retirement.