photo credit: wwarby
Have you sat down with your children and discussed the value of saving money yet? I posed the question to my twitter followers and was fascinated by some of the responses I received. I had figured that some people would have the money talk when the child was old enough to start doing chores around the house or maybe when they started asking for expensive clothes. I don’t recall the exact age, but I was probably around 7 or 8 when my parents discussed the importance of saving money for a rainy day. At the age of 7 I really didn’t need an emergency account, so all the money I earned went towards savings.
I received several comments from twitter friends that started teaching children about money management during the high school years. A couple had even started as early as 2 years old when they took the children shopping and discussed how much items cost at the store. My favorite comment came from a mother who had opened a bank account for her daughter when she was only 3 months old. Any cash gifts given at birthdays or holidays was going to go straight towards the child’s bank account.
It can be tough to teach your children about money when your child is begging for candy or a toy at the store. Taking time when you are at the dinner table or getting ready for bed to discuss how they can help them understand where money comes from. At 5 my daughter understands the concept that money is earned and that we don’t just visit the store and buy anything we want. Our toddler though doesn’t have any concept of money yet and thinks he can have anything. The beauty of diversion for a 3 year old is priceless and I will miss using some of my stealthy tactics with him in the store.
Maybe you’ve waited until your children are a little older and have the ability to take more responsibility with money. You might have conversations about working for extra money or doing chores around the house. Have you let your children make financial mistakes so they can learn from them? If your child wanted to buy $100 jeans, but it would deplete savings, would you allow it to happen?
Discussing financial situations with your children can also impact the way they look at money. Do you and your spouse communicate openly about your finances with your kids? If you are shopping for a car, do you set expectations around your budget?
What are you doing to teach your kids about saving money? Do you take time to discuss how you earn your money and what expenses you have to pay each month?
