Newsletter

Have you ever wondered when is a good time to teach children about money? Have you even thought about it, or have you just assumed they would learn about it at school? Although schools may teach the basics of money, it is usually not enough to prepare children for real life experiences.

“According to T. Rowe Price’s 11th Annual Parents, Kids & Money Survey found that nearly half of parents said they miss opportunities to talk to their kids about money and finances. And a quarter said they are very reluctant or extremely reluctant to discuss financial topics with their children.” - Forbes Advisor

Don’t think that children are too young to learn about the way a mortgage or a loan works, what is principal and interest, how to budget, how to use credit cards responsibly, and so on. The sooner they understand the concept of money and how it affects our way of living, the sooner they will be able to make more educated decisions when it comes to their finances. Even if they end up making mistakes, you will at least have provided them with knowledge that they can rely on.

There are many ways to teach children about money. Below are some suggestions from Dave Ramsey – Personal finance advisor and author:

Pre-schoolers and Kindergartners

1. Use a clear jar to save - When you use a clear jar, they see the money growing.

2. Set an example - If you’re slapping down plastic every time you go out to dinner or the grocery store, they’ll eventually notice. Set a healthy example for them and they’ll be much more likely to follow it when they get older.

3. Show them that stuff costs money - Help them grab a few dollars out of their jar, take it with them to the store, and physically hand the money to the cashier.

Elementary and Middle Schoolers

4. Show opportunity cost - That’s just another way of saying, “If you buy this video game, then you won’t have the money to buy that pair of shoes.” At this age, your kids should be able to weigh decisions and understand the possible outcomes.

5. Give commissions, not allowances - Don’t just give your kids money for breathing. Pay them commissions based on chores they do around the house.

6. Avoid impulse buys - This age group really knows how to capitalize on the impulse buy - especially when it uses someone else’s money.

Many of us have probably struggled with money at some point in our life. Whether it was not knowing how to budget, overspending on credit cards, not paying bills on time, or simply spending more than what we make, we all could use the opportunity to learn from our mistakes and experience. Take the time to educate your children about financial literacy and provide them with the tools to succeed and make educated decisions.

Spring cleaning also does not have to be a one man show. Getting young children involved by assigning age-appropriate chores will surely help the process move along even quicker for everybody. Putting on some motivational music for the family to enjoy cleaning to or establishing a household reward as an incentive could also be great motivational tools to get everyone on board.

It’s important to not stress over cleaning the parts of your home that are regularly cleaned daily or weekly, but to focus on the areas that were somewhat neglected during the winter season. A well-done thorough spring cleaning is a great opportunity to establish ongoing spring cleaning habits, which can make the next spring cleaning even easier.

- Jordyn Ruiz

< March 2021

May 2021 >