It’s no secret that money is important in our society. Public speakers, self-help gurus, talk show hosts, priests, ministers and just about everyone else talk about money. We constantly hear about how important it is to teach our children how to value, obtain, save and spend money. Yet oftentimes, we make the mistake of believing that teaching kids about money can wait until they are teenagers or college students. In reality, the younger we start teaching our kids the less likely they are to have misconceptions or misgivings about money. I’m blessed that my wife and I have adopted and implemented some basic strategies that we hope will teach our son the importance of financial planning and how to treat his money.

1. Teach your children that money is something you earn and are not simply given.
When your child says “Daddy, can I have a dollar?” or “Mommy, can you give me….?” take the opportunity to recognize that this language and mindset will always have them asking and hoping. Teach your child that when they want something, it takes money to buy it and that it takes work to earn the money. Encourage your child to change his/her approach when asking you for money. The question should be “Daddy, what do I have to do to earn a few dollars to buy a bike this summer?” or” I want a new video game, Mom. I would like a chance to earn it.” This very easy change in thinking will teach your child from a young age that money does grow from trees, but you have to plant the seeds and water the roots before you benefit.

2. Encourage your kids to save. In our adult years many of us have the opportunity participate in 401k retirement plans where, whatever we contribute to the plan is matched by our employer. When enrolling in our 401k, we understand that the smart thing to do is to put away some of our earnings so that the nest egg can grow while we are still able to enjoy the rest of our paycheck. We can teach our children the same concept. Every little dollar here and there that they receive, whether from a parent, aunt, uncle or from buying a news paper for the neighbor can be put into savings. For everything they save within a 30 or 60 day period, you will match either 100 percent or 50 percent. This way, for instance, if a child wants to go on a trip to Six Flags and it costs $60, they know all they have to do is find a way to earn $30-$ 45, depending on the parent’s matching contribution.

3. Teach your children how to budget.
Oftentimes we keep our money matters very private and protected, even from our kids. The only way to teach your children about budgeting is to let them participate in the household budgeting. Allow your kids to help you with the bills. They will appreciate not only how hard you work but also how you strategically plan out when and how to pay each bill that keeps food on the table, a roof over their heads and that little extra that pays for the fun stuff. A great way to practice their budgeting skills is to let them help with all the food shopping and planning. Give them the food budget and make the food list. Make sure to have them bring a calculator along to the market. Have your children look at brands and sizes and prices to determine if you can get all that you need within the budget allotted. If your children are old enough you can also do this same exercise when it is time for them to buy school clothes. When it’s time for clothing shopping for school allow them to make a list of what they want, e.g., how many pairs of shoes and pants, how many shirts, etc. Then cut this list down and give them just enough to get the number of items on the shortened list. If they come back with the agreed-upon number of items and within budget, reward them with an additional $100 or $200 to go complete the shopping. This is a very practical and “hands on” way for your child to learn about budgeting and responsibility.

4. Open a Kiddies’ account,
Many banks have accounts for kids. They can learn from a very young age about banking procedures, how to read a bank statement and how to balance a check book. Being able to see a savings account takes it a step beyond their piggy bank.

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About the Author:
I am a professional Life & Business Coach! Think of it as a Personal Trainer for your Life & Busines. I am also an inspiring Author and a Keynote/Workshop Presentor. Teaching people how to drop the survival attitude and develop a success mentality.
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