How to Teach Your Kids About Money

Even though I’ve coached hundreds of financial clients across U.S. and Canada and been interviewed on TV and radio, I’ve found teaching one group of people to be the most challenging of all….my 5 kids!

Do you feel like this sometimes too?

Teaching kids about money isn’t always easy when they are constantly bombarded and surrounded by scarcity and the poverty mentality.

This can be even more challenging because we’re so emotionally connected to our families. Although my oldest is only 9 years old, I’ve learned that there are a few things we can teach our kids about money where they can be more abundant abundant and they can be better stewards than their parents 😉

Below are just 3 ideas you can start teaching your kids today, one of which was quoted in an article in US News:

  1. Money Is Abundant Money should be a positive conversation. When parents talk about money like there’s never enough or a “necessary evil,” my experience has shown that those children grow up hating money and struggle with it throughout their lives. The first thing I do on a daily basis is to avoid phrases like “We can’t afford it” or “We don’t have enough.” Instead, use more truthful phrases such as, “It’s not a priority right now”, “I don’t think it’s worth the price”, or ask questions like “What can we do to find or earn the money to get that?”
  2. Earn Your Keep – One problem I see with the parents of the rising generation is they want them to have what they didn’t with little sacrifice on the part of the child. As a result of spoiling and helicopter parenting, more kids have an entitlement mentality and have not developed a good work ethic. In our home, we do a point system for every chore that they do. Points are taken away if they don’t do their work. As they accumulate points, they can use those points for “technology time” (one point consumed for every hour of video games or TV) or they can cash them in. They earn a dollar for every 10 points. Find ways that work for your family where they can be rewarded for providing value and especially going that extra mile.
  3. Pay Charity and Yourself First – As our kids earn money, I have them set aside 10% to give to our church (or charity, if you choose), 20% to themselves to save for college, and let them choose what they want to do with the other 70%. Be sure they have a reason to save because money is meant to be used, not hoarded.

There are obviously a lot of other great financial concepts you can teach your kids and even have fun with it. However, start somewhere and do it simply.  One of the best ways to teach them is through your own example.

Because I know you’re just like me, a caring parent that wants what’s best for your children, to help you out, CLICK HERE to register for free to get my weekly money tips so you can take immediate action and change your family’s life for the better!