When you consider that parenting is basically on-the-job training, it isn’t surprising that children grow up with problems. More surprising is that they do pretty well… except where money is concerned.
If love is what makes the world go around, it’s money that stops it in its tracks. There is hardly another subject that causes so many arguments, divorces and violence, or so alluring that it becomes an end in itself, and frequently leads to crime. Few other areas are so ignored by parents and teachers.
We send children to school to learn basic academic skills, and to college to further develop marketable abilities. We provide music lessons and introduce them to sports to round out their lives. But money management is expected to be innate. Is it?
What is the likelihood that you will be able to protect your children from financial difficulties throughout their lives? Pretty slim! It would be better to allow them the learning experience of handling money while they are small and you are there to help. What better way can a child learn this than to have some money of his own to use, to stretch out, to run short of, to invest. All this under the watchful eye of a caring parent.
A lot of debate exists on the pros and cons of giving allowances to children. Or should they be paid for working around the house? My opinion? Children are members of the family, and deserve a spending share also, just for existing. Linking allowances and jobs together defeats that purpose. It doesn’t take a parent long to learn that each child handles responsibilities on a different level, and there is no way to be fair with every one that way.
This is not to suggest that children should escape jobs at home. They live there, they create a large amount of the work load, and they should share the upkeep also, geared to their ages and abilities. Cleaning their own rooms, putting their clothes away, doing dishes, helping prepare meals… these are all normal maintenance in a home.
When children are very small, they will prefer a nickel to a dime because, being visibly larger, it will appear to have more purchasing power. But you will show them otherwise. Lesson number one.
If you buy candy or trinkets for a preschooler when they come shopping with you, limit what they can spend, and show them just how much can be bought for that amount. This will teach decision making also, another often overlooked aspect of parenting.
Show children how to budget on paper. Economists say these two habits lead to successful money management: setting aside the first ten percent for giving and the next ten percent for saving. You know from experience that if it isn’t taken off the top, it won’t be there when you get to the bottom. Teach children these principles.
Show them how to spread the rest out over the week if they will be using it for small things like candy or toys, or how to wait it out until the next allowance, if they’ve blown it all quickly.
Help them to comparison shop and learn that they can get more for their money at one store than another.
Each year, on a birthday, for instance, the amount of allowance might be updated according to needs. Don’t include lunch money in this. Eating isn’t optional. Besides, a child who wants to buy something badly enough will skip a meal to reach a goal.
As they get older, establish an amount they may spend on clothing for the season, and then, short of a catastrophe, don’t bail them out. If they would rather buy one pair of designer jeans than three pairs of Levi’s, let them. But let them live with it too.
Allow an opportunity to earn extra money, if the purpose is good and the family budget can handle it. This would, of course, be apart from their regular responsibilities.
Encourage a teenager to open a checking account, and then watch that he keeps the balance up to date. Show him how to prove the total when statements come in.
Don’t use money as a reward or punishment. It becomes easily confused with self esteem.
Include children in limited family discussions on finances, but don’t divulge to youngsters details that you don’t want known outside of the home. You should also be careful not to burden them with your worries. This area calls for a lot of good common sense.
One of the most unrealistic things parents do in the area of finances is to allow a working child to live at home without contributing to the home expenses. Parents often feel they are helping their children to get a start, but what they are actually doing is protecting their babies from the mean realities of life, keeping them dependent and immature. Whether you need the money or not, they need to own up to their own responsibilities.
After all of this, I’ll have to admit that in the end children are going to learn more about money handling from what they see than from what we say. “Train up a child in the way he should go and when he is old he will not depart from it,’ (Proverbs 22:6) includes the injunction to teach stewardship. So be flexible and set a good example. God surely intended for us to manage our affairs sensibly.
For better or for worse, the apple doesn’t fall far from the tree. Scary, isn’t it?