MY daughter was about 7 when she asked me to buy her something and I told her that we needed to first save for it. She responded saying, “Why don’t you use your ATM card, mom?”
Various studies show that our educational system doesn’t give much emphasis on teaching our children financial responsibility, thus, creating a culture of debt-burdened population. Where everything is easily procured and spent, it is paramount to our children’s future success to teach them financial responsibility from a very young age.
Teaching financial responsibility to children will give them the financial foundation they need to act sensibly as adults. Studies show that people who learn financial responsibility at a young age also have less debt and more savings when they become adults.
In a consumer-driven culture like ours, money management has become one, if not the greatest, ills of our society. I’ve seen people from all walks of life- either they’re making $30,000 or $300,000 annually- crumble from debt because of poor money management and planning.
Here are ways to begin teaching kids the fine art of money management:
Consider giving your child a regular allowance. A weekly allowance is a good way to start your kids on the path to fiscal fitness. Allowing them to start handling their own money can empower them with a sense of responsibility.
Set a good example. Kids learn more than you realize by watching you, so the habits and ideals you embody will be passed on to them, whether you want to or not. So make sure you practice what you preach by not frittering money on frivolous, useless items (unless you get use or enjoyment out of them, in which case they’re not frivolous). Or better yet: take your child with you when you make a deposit at the bank or withdraw money so they become accustomed to the idea of saving and spending money.
Set goals for your children. If your child wants a new toy or video game, don’t be afraid to say no. If you decide to make that purchase, figure out how he or she can earn the toy by doing a chore or helping clean up his or her room. This can help the idea that work produces results.
Now 13, my daughter manages her money from weekly allowances and helping with routine tasks in the office. She gets paid a small amount monthly and she gets to realize the value of hard work and money. She ensures that at the start of each month, either mom or dad deposits at least half to her savings account for college. She gets to write on her own deposit slip, too.
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Evangeline is a California registered tax preparer, a legal document assistant for the general public, and a freelance paralegal offering assistance to various attorneys. She can be reached at her office at 2451 Colorado Blvd. #2, Eagle Rock, CA 90041 or at her marketing location inside the Eagle Rock Plaza. Her phone number is (323) 550-1869 or you can check her website at: www.evangelinegiron.net. She is a member of the court-endorsed California Association of Legal Document Assistant (CALDA) and an Associate Member (Non-attorney) of the LA County Bar Association (LACBA).
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