| As good parents, we strive to give our children the | | | | together. Part of the joy of owning something is |
| best opportunities for success. However, when it | | | | sharing the experience of using it. Owning a barbeque |
| comes to understanding how money works, many | | | | or big screen television is more fun when we invite |
| parents are doing a miserable job. National surveys | | | | family and friends over to share them. Sometimes |
| conducted by the Jump$tart Coalition show that the | | | | other people will have things that we do not have and |
| majority of high school seniors fail the test when it | | | | they might like to share them with us. |
| comes to even simple money skills. Why? | | | | We save up to get bigger stuff. When we do not |
| Some parents undoubtedly feel inadequate to teach | | | | have enough money to buy something we want |
| their kids about money because they struggle with | | | | today, we can decide to not spend our money on |
| their own finances. Others may think that money | | | | other things until we have enough to buy it. Being willing |
| management skills are obvious and easy. Perhaps | | | | to sacrifice other things and save perhaps for a long |
| others simply want to shield their children from | | | | time, just shows us how much we really want that |
| concerns about money and other harsh realities of life. | | | | expensive item. Sometimes, after all the sacrificing and |
| Finally, there are perhaps a few others who wish to | | | | saving, we realize we really did not want the item as |
| maintain one of the last vestiges of control they have | | | | much as we thought we did and we do not buy it. This |
| as their kids careen through their teenage years. | | | | kind of experience helps us be more judicious about |
| You do not have to be a financial wizard to pass on | | | | purchases in the future. |
| sound money skills to your kids. If you ask me, you are | | | | Help your children make these kinds of choices and |
| doing them damage if you do not teach them how to | | | | follow through with the denial and the reward. If they |
| manage their money. So, even if you feel like you | | | | choose to give up a toy or a treat to help get |
| need to learn more before attempting to help your kids | | | | something bigger later, let them make the sacrifice. |
| become money wise, here are some sound principles | | | | You may frequently have to remind your children of |
| that will help them stay on the healthy side of their | | | | the choice but let them make it and stick to your guns. |
| wallets for the rest of their lives. You may find yourself | | | | Borrowing makes things cost more. If, instead of |
| learning along with them. | | | | saving, we borrow money to buy bigger stuff sooner, |
| Money comes from work, not the ATM. Unless you | | | | we have to pay more because the person lending the |
| come from a long line of super wealthy people, you | | | | money gets something out of the deal. Banks, credit |
| probably have to work for the money you get. It does | | | | cards and even parents can charge interest. We may |
| not magically appear out of cash machines. However, | | | | have to work a long time to pay the money back. |
| for most kids, the experience is the opposite. They | | | | That money could be spent on other things that we |
| have not had to work. All they need to do is ask. Kids | | | | must now do without because of our debt. |
| really benefit from understanding that Mom or Dad, | | | | Many parents understandably have difficulty charging |
| most likely both, have to work very hard for the | | | | their children interest when you allow them to borrow |
| money that that the family spends. Someday, they will | | | | against their allowance, you should also help them |
| have to go to work to get their own money. Help them | | | | understand that they may have to do without |
| understand that doing well in school will help them get a | | | | something in the future until their debt is paid back. |
| better paying job. | | | | Remember you are teaching them an important life |
| As kids get older, it is all right to exchange cash for | | | | lesson, not punishing them for making a mistake. |
| extra work. Offer them opportunities to earn the | | | | Generosity has its limits. It is good to be generous with |
| money they need for the things that they want. It is not | | | | others. However, we may be hurting our family if we |
| good to pay them to do things that they will have to | | | | spend or give money that we need in order to be |
| do for free for the rest of their lives like make their | | | | generous with someone else. When we really want to |
| beds or clean up their rooms. It certainly would not hurt | | | | be generous and that generosity requires a sacrifice |
| them to wash the car, clean out the garage or cut the | | | | on our part, we should only sacrifice things we want, |
| grass for a little cash. | | | | not things we need. |
| You can't have everything you want. We have only a | | | | Charity and helping out the less fortunate is a prevailing |
| limited amount of money every month. After we use | | | | cultural norm in America of which we should be |
| that money to buy something, we have less money to | | | | rightfully proud. Americans are the first to send help in |
| spend on other things. Consequently, the number of | | | | a disaster. Our children, however, need help keeping |
| ways we can choose to spend the remaining money | | | | generosity in perspective. |
| is reduced. If we use our money to buy candy today, | | | | It is also important to help them understand that not |
| we may not have enough left to go to the movies | | | | everyone manages their money as well as we do. |
| tomorrow. We should think about and plan how we | | | | While we like to be kind and generous, we cannot |
| are going to use our money before we start spending | | | | make up for the lack of others when it comes to |
| it. | | | | managing money. If our friends spend all their money |
| When kids are learning to manage an allowance, tell | | | | on ice cream, we should not take money out of our |
| them how it is to be used. Give them financial | | | | savings to pay their way into the movies. |
| responsibility for entertainment, clothes, music, | | | | Saving is automatic. We save because that is what |
| cosmetics whatever they spend money on. Avoid | | | | we do. Saving for the future should be a habit. Ten |
| constantly bailing them out of tight money situations if | | | | percent of everything we earn should automatically go |
| or when they overspend. They might miss a movie or | | | | into the bank. We do not need to know what we will |
| two but they will learn how to manage. | | | | buy with it. We do not need to know how we will |
| Buy the stuff you need before you buy the stuff you | | | | spend it. We just do it because that is what we do |
| that you want. Since we have limited amounts of | | | | with money. The day may come when we really need |
| money, some of the things we buy are more | | | | that cash and when we do, we will recognize it and be |
| important than others because we need them. When | | | | glad of our savings. |
| making a plan for spending our money, we make sure | | | | Advertising is not real. When kids see commercials for |
| we buy the things we need before we start spending | | | | new toys or products, they really want the feeling or |
| money on the things we want. We buy school supplies | | | | the fun those items appear to bring to the kids in the |
| and clothes before toys and candy. Mom and Dad do | | | | commercial. It is good to discuss with your children |
| this as well. We make sure the rent or mortgage is | | | | how much fun they would really have with that item. |
| paid before we start spend money on a vacation. | | | | The kids in the commercial are actors. They are |
| Some people have more money than other people | | | | working and being paid to have fun with that product. |
| and consequently, they have more stuff. Perhaps they | | | | Would we have as much fun? We buy something |
| are paid more for their work or they work more hours | | | | because it will meet our needs or we will enjoy it, not |
| than others. There will always be other kids with | | | | because kids in a commercial appeared to have fun or |
| bigger, better, newer things. Children need to see those | | | | other kids at school have one already. |
| differences and learn how to cope with them. Having | | | | Even if your children grow up to have seven figure |
| more stuff does not make one person better than | | | | incomes, money skills will be the key to their financial |
| another person. It is all right to have less than someone | | | | security, success and even their self-esteem. No |
| else. If we have more that others, we should share. | | | | matter how much they earn, they will have learned |
| Sharing is fun. If we have stuff that other people do | | | | skills that will help them be happy and get the things |
| not have, we can share it with them and enjoy it | | | | that they want. |