How Do You Teach A Kid About Money?

[Madeline]

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?

 

[Mr Natural]

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

 

[Madeline]

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.

 

[zzzz]

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.

 

[masquerade]

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.

 

[Madeline]

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.

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."

 

[Barb]

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.

 

[Madeline]

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......

 

[AllieBaba]

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!"

 

[zzzz]

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!"

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

 

[AllieBaba]

They think I work because I want to!

 

[kwc57]

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?

It is a very urgent matter as it affects their whole adult life. My son is 17.5 and a senior in high school. One of the ways we taught him about money is by example. We don't blow money and we rarely buy on credit. Beyond that, there are two other things. One, he is a Boy Scout. Each month when they get ready to go on a campout, each patrol has to come up with their own menu, make a gorcery list and go buy the food. We do a lot of teaching about buying the Wal-mart brand instead of the big name brand because you save X amount of money on each item which adds up to more spending money with the funds you have. There are also Merit Badges that are Eagle Scout reguired such as Personal Management. They have to create and work a 12 week budget of income, savings and spending. Beyond that, we did the same thing our parents did to us. When you turn 16 and get your drivers license, you get a job and make your own vehicle payment, and pay your insurance and gas. Get an account at the bank and put your money in it so you can save some, meet your obligations and spend a little. I have to say that at 17, he is so tight he squeaks. We actually have to encourage him to lossen the pocketbook and spend a little of his income.

Actually having to work and pay some bills is one of the best ways for kids to learn about how to manage money.

 

[goldcatt]

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?

How do I teach my 6-year-olds about money?

"NO"

Works like a charm.

 

[Madeline]

No votes for sharing the family budget with a HS kid?

 

[Barb]

No votes for sharing the family budget with a HS kid?

I did, not in the greatest of detail, but I did.

They think I'm magic, and that they inherited my powers.

It ain't always a good thing.

 

[uscitizen]

Start early. Make em pay for each bottle out of an allowance. No money no bottle.
gotta learn early about the law of supply and demand.
He who has the supply can pretty much demand what he wants.

 

[Paulie]

People generally don't budget because they don't want to. There's a stigma, and a very fine line between frugality for the sake of the budget, and being cheap.

No one wants to be considered cheap. It's bad enough that adults are this way, but it's way worse with kids. You can't be cool and cheap at the same time.

 

[Care4all]

We have been unable to have children together, but what my parents did with me, is from about 15 years onward, I had to pay for everything I wanted that was not a necessity, myself....even my first car, and my first car's insurance....all from me having to work to earn the money for it....even extra clothes, over and above what my parents bought me for back to school....I had to pay for it....

that was enough of a lesson.

 

[Madeline]

People generally don't budget because they don't want to. There's a stigma, and a very fine line between frugality for the sake of the budget, and being cheap.

No one wants to be considered cheap. It's bad enough that adults are this way, but it's way worse with kids. You can't be cool and cheap at the same time.

I raised a girl child in the Horrible '80's, and that damned peer pressure nearly broke me. I was paying $100 for jeans (and getting 5 pairs) because she could NOT hold her head up in public without them....blah blah blah. I regret all that conformity, and I hope parents are comfy teaching their kidlets they dun have to be quite so "cool".

 

[Care4all]

Well, I was allowed to be "cool", but I just had to earn the money myself to be cool...no one had credit cards back then, so if I wanted something, I had to work for it to pay for it....

you'd be amazed at the things I ended up deciding for myself that I did not "need" in order to be cool....I had to make choices....there was only so much money I could make, working part time and going to school.