Kids Life Tuscaloosa May/June 2022 - Page 20

family finance

5 SIMPLE WAYS TO TEACH KIDS ABOUT MONEY

By

I

Rachel Cruze
was blessed to grow up in a home where my siblings and I were taught wise money habits ( would you really expect anything else from Dave Ramsey ’ s family ?). And even though I didn ’ t always love the lessons on saving and budgeting as a kid , that knowledge set me up for success as an adult .
Sadly , way too many kids today miss out on the value of fi- nancial education , and way too many adults still struggle with money basics . But the good news is , you can start teaching your kids about money today with these five simple tips .
1 . GIVE THEM A JOB
It ’ s so important to teach your kids the value of hard work at an early age . Work is good for them and helps them develop so many important skills , like responsibility
and teamwork . And it ’ s key for them to learn money isn ’ t free — you have to earn it .
So , instead of offering them an allowance for just existing , try paying them a commission for each chore they do around the house . If you really want to teach patience , you could give them their “ paycheck ” once a week or every other week , just like in the real world . This way , they ’ re still getting rewarded , but they ’ ve worked hard for it and learned about delayed gratification in the process . And of course , these jobs should be age-appropriate ( we don ’ t need any 5-year-olds trying to iron their own clothes here ).
2 . MAKE GIVING A PRIORITY
Kids will learn a ton about handling money just by watching you . When you and your spouse make generosity a habit , your kids will too . Whether that ’ s tithing at church , giving money to the homeless community , or buying groceries for a neighbor who ’ s having a hard time , let your kids see — and even participate in — these acts of generosity . This will build character and a healthy attitude toward money that will stick with them into adulthood .
3 . SHOW THEM HOW TO SAVE

An easy way to help your kids practice saving is by starting them on the envelope system . All you need is three envelopes labeled Give , Save and Spend . Every time they earn or are given money , have them divide it up and put part of it into their Give envelope first . Then part of it goes into their Save envelope , and the rest can go into their Spend envelope so they can use it to buy the things they want . may / june 2022

20
4 . INVITE THEM TO YOUR BUDGET MEETING
This one depends on what works for you and your family , but if your kids are a little bit older and able to understand what ’ s going on , think about letting them sit in on your monthly budget meeting with your spouse . It ’ s a great way for them to see how budgeting