How Do You Teach A Kid About Money?

Discussion in 'Economy' started by Madeline, Sep 7, 2010.

  1. Madeline
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    Madeline BANNED

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    I have a kid in her 30's, so I'm not an active parent any longer. When she was little, there are things I wish I had done differently but she's turned out more or less okay thankies to some lucky accidents.

    One thing that became a lifelong blessing was she got hired on as a receptionist/general dogs' body at a small credit counseling office when she was in high school. The owner eventually turned over most of the responsibilities to her...depositing checks, meeting with clients, etc. She knew good and well what a FICO score was when she was 16 and 17, and back then, few adults knew. It has been a tremendous assist to her.

    What would I have done differently? I'd have let her see the budget. What I earned, what I spent it on what, etc. Now, if we had been terribly financially stressed I might not have done this, and I wouldn't do it with a kid who was in middle school or has emotional problems. But by high school yes, all things being equal...I think a kid would be able to grasp the family budget and to know some things are not for sharing outside the family.

    How did you/do you teach your kids about money? Is this an urgent matter to you?
     
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  2. Mr Clean
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    Mr Clean Gold Member

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    Impress upon them that the most important thing money can buy is their independence.
     
  3. Madeline
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    Madeline BANNED

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    I think the hardest thing for my kid to learn was ALL the costs of living on her own. She struggled a lot with "whoops, the utility bill surprised me!" and even library fines caught her out from time to time. Then of course, the emotionality..."I deserve a new shirt" style thinking.

    Well, ya...but just "deserving" it doesn't pay for it. That's something even many adults don't seem able to grasp.
     
  4. zzzz
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    zzzz Just a regular American

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    For me when I spend money I try to relate how many hours I had to work on my job to get that money. When you do that it gives you a new perspective on the value of what you are buying and spending. To teach someone the value of money you need to have them earn it by working or doing a job.

    I would say that quite a few people in this country do not realize how much money is worth. For the high income earners and rich people they have no real basis on which to relate to. Of course some of them started out without money too and those people do or did know the value of money. But for those who never did manual labor or have never been without, they do not know the real value of the dollar.
     
  5. masquerade
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    masquerade positivity

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    My son recently got his first job. Part-time, making a few dollars over minimum wage. He's a senior in HS and enjoys going out with his friends. Just about every time they go out, they stop for coffee and or food. Now, with the expense coming out of his own pocket, he's sees the waste in eating out often. Especially when he knows his mom (me) is at home cooking delicious meals. And our Cuisinart makes a damn good pot of coffee.
     
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  6. Madeline
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    I couldn't agree more, zzzz. I have more than one friend my own age with over $100,000 in credit card debt, and most owe on a home equity line of credit. Far too many people think "well, if I really want it/need it, debt is okay."
     
  7. Barb
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    Barb Carpe Scrotum

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    I feel ya, Maddie. I took care of a corporate account and never balanced my personal checking account. I've flown by the seat of my pants most of my adult life. When $$ is short and kids need stuff, we do what we do. I've been pretty lucky, I guess. There was always a little more when I needed it, but then again there was always a little more need when I got it.
    LOL! Maybe I'm yer kid's twin.
     
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  8. Madeline
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    Madeline BANNED

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    Kid passed a watershed just this summer...she repaid a "loan" from me. I nearly fell down in shock when the mail came! She's a good little egg....I don't deserve her, really. There are so many things I wish I had done better as a Mommy.

    Ah well......
     
  9. AllieBaba
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    I don't know. I have one child who is pretty good with money and another who isn't. I'm still learning myself.

    My babies are just learning that money in the bank isn't there for the taking. I'll say, "no, we can't buy that, I don't have any money" or something like that, and they'll say, "Just go to the bank! They'll give you some!"
     
  10. zzzz
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    zzzz Just a regular American

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    They just don't know what it takes to make that dollar in the bank.
     

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