Kids and money
Let Your Kids Teach You To Save Money
by Jeffrey Strain
My Story: A Frugal Money Lesson
11 Ways to Teach Kids about Money
Modeling Money Behaviors
We all know that teaching our kids about money and finances is an important task that schools just don't do. That means it's up to the parents to educate their kids about finances. Since I don't have kids of my own, I went to visit a friend who has a teenage boy who is excellent in the personal finance area. I figured that my friend must have spent hours coming up with a plan to have his son understand so much about saving and personal finances at such a young age.
"So, can you give me an outline of how you went about teaching him?" I asked my friend.
He laughed. "I never did a thing," he replied.
"Then where did he learn so much?" I asked.
"On his own," he said and then told me the following story:
Apparently, one week, his son was complaining about the amount of allowance he was receiving and wanted more. Money was tight and my friend was frustrated and basically blurted out, "If you want more money, you can have whatever you're able to save this household."
My friend thought this was the end of it until his son began coming to him with ways the family could save money and asking for payment when the ideas worked.
"At one point, I ended up paying him $300 for his weekly allowance because of all the areas he was able to trim expenses," my friend said.
The hardest part? "I had to be willing to expose all our finances to him as he got better and wanted to earn more money. It was a bit embarrassing to see all the places we were wasting money that my son could find."
Brilliantly simple. Give kids a monetary incentive (especially when they're in their teenage years and want as much money as they can get) to learn first hand how to save and budget. While it may take a bit more effort on the parents' part to get something like this started than it took for my friend, it would be an invaluable lesson for any child for his/her entire life.
As I was thanking my friend for his help and about to leave, we heard a voice from the other room. "Don't forget to turn off the lights when you're done in there," his son reminded. My friend rolled his eyes and I laughed. It was the only time I've ever heard a kid reminding their parents to turn off the lights and I guess that in itself says it all.
Share your thoughts about this article with the editor. Just Click Here and tell us what's on your mind.
Debt from my past is preventing me from saving for my future! Tell us: Yes, debt is hindering my ability to save and I could use help dealing with it! or No, debt is not a problem but I am trying to get ahead financially!
More Money Tips & Tools
- How to get a faster tax refund
- Personal finance calculators everyone should use
- Why you should know your credit card payment cutoff time
- Saving-money secrets of the rich and frugal
- 5 low-risk ways to earn higher interest now
- How to save money fast
- 7 IRA withdrawals that don't trigger a penalty
- This week's Readers' Tips