A lot of people are concerned about the money habits youth have today. These concerned citizens often say things like “They need to teach budgeting in school” or “than credit union needs work with kids more.” The truth is that School does have a class in grade 10 where budgeting is a mandatory part of the curriculum, and the credit union helps by teaching a budgeting class at any of the schools who want us to come in. These things help youth learn, but the greatest budgeting lessons a youth ever learns come from home.
Youth learn most from seeing what their parents do. If a parent is poor at handling money, often the youth is too because they learn those same habits. The best way a parent can teach their kids about money is to handle it well themselves, and talk to their kids about why certain choices have to be made regarding money.
I learned this lesson last year. My kids were asking for a variety of items they had seen on TV commercials or that their friends had, and my regular answer was “We can’t afford it.” I have said that for years. Then I overheard my oldest telling a friend that we were too poor to do a certain activity that he hadn’t even asked us about. The lesson my son learned was that we were poor and couldn’t do things that he thought were fun.
My wife and I discussed this, and decided we needed to change how we communicate our money issues with our kids. We started by changing our answer from “we can’t afford it” to “We have decided to spend our money on other things.” We also made sure that we pointed out the things we do spend money on – scouts, brownies, tae-kwon-doe, piano lessons, swimming… and that because we have chosen to spend money on those things we have decided not to enroll the kids in hockey, or buy a Playstation… We want the kids to understand that our budget is about choices, and that we can’t just have everything we want. We also play money games with the kids (Monopoly, Life…) in addition to them earning money through extra chores around the house and yard.
So, what are your thoughts about teaching kids about money? The first 3 people to post how they teach/have taught their kids about money will win their choice of a board game (Monopoly, Monopoly City, or Game of Life) a Wealthy Barber Book, and $40 Rocky Bucks to be spent here in Rocky Mountain House. We’d like to hear from you, not only what you did but how it has turned out for your kids so far. After posting your response, please e-mail your contact info to rockycu@myrocky.ca so we can get the prizes to you.
My kids are in 4H so after they receive the money from the sale of their calves, we sit down to budget where the money will go. First they have to pay dad back for the calf and feed. Secondly we figure how much they need to cover cell phone bill and other expenditures for the year. The remaining amount is invested in mutuals in the hope this will purchase their first second vehicle when they turn 16. Elaine Kautz
ReplyDeleteAt the time, my 5 year old boy wanted new shoes. Not just any shoes...Etnies shoes. He was already a victim of brand name preferences. (No thanks to Uncle who told them they are the only cool ones.)
ReplyDeleteWe told him he just got a new pair for KINDERGARTEN and didn't NEED a new pair. He didn't know the difference between need and want then.
Fine, you save up and you can buy them. He ran to his piggy bank and emptied his wallet and ran back and dumped it all out on the counter. "Is this enough?" First of sweetie, where did you get this money? He answered, my wallet. How did it get there? You gave it to me, he said. EXACTLY....that was another lesson and converstation.
Anyway, Daddy counted all his money up and he had $30. Is it enough Daddy, he asked. Well son, you have enough to buy 1 shoe. The look on his face was priceless and he got it. He then went on to solicit every adult and had the money by the end of the week (he is very cute, with big round brown eyes), so he got his shoes, but he got the lesson too.
We did the same thing with their Nintendo DS. We explained how much and how many of one thing added up it would take. For my son it was 2 pair of Etnies to pay for that. For my daughter it was 10 Webkins. Once they got their DS, we used it as an adding tool. eg) It would cost 2 DS systems to go stay in a hotel with a waterslide for the weekend. It makes them think of everything now. When I buy groceries, they tell me "WOW, that was as much as 2 DS's". Exactly, things we NEED are very expensive too so remember before you make your Christmas wish list.
Robin Montgomery
When I was growing up my parents taught me budgeting skills my slowly giving me greater responsibilities with purchases that concerned me. When I was in elementary school it involved giving me a small amount of money that I would have to use to buy toys and kid like things. I can remember it was hard at first as I would spend the money as soon as I got it in my hands. It meant that I was never able to buy larger ticket items as I didn't know how to hold on to my money to save. However, it came with time and soon I was saving money for larger toys.
ReplyDeleteIn my teenage years my parents got tired of me complaining about the style of the clothes they bought me. As a result my monthly budget was increased and now I was in charge of buying my clothing and bathroom supplies. They didn't give me enough to buy brand name so if I felt that brand name was a "need" then I would have to save up for it. I tried the brand name at first but soon realized that I did not have enough money to buy clothes if everything I bought was brand name.
Older still I got my license and and started driving my parents car and then my budget had to increase a little to account for gas and maintenance on the car. I didn't have to pay all of it but they held me accountable for my fair share.
It was a slow process but it got me to realize the importance of budgeting and when I left home to go to school it was not much of a leap to do all of the budgeting on my own.
I am sure that we will do the same thing with our kids as I very much appreciated what m parents did for me.
Mike Cellini