When I think about our economy and some of the daunting financial burdens our kids will face as adults, I regularly remind myself that teaching my kids about finances very early will impact them positively as adults.
Teaching kids about the many aspects of money is quite a task that some parents never pass on positively to their kids. Possibly it is because they've never mastered their finances themselves or they don't find it important. My children are at the ripe age to learn and I'm taking every opportunity to tell and show them how we deal with our finances. (They are 9, 7 and almost 6.)
There are so many ways we teach our kids, the first and foremost is being a good model. How I deal with money, how I spend it, how I save it and how I act regarding our finances is important. I recently read the book
Mind over Money: Overcoming the Money Disorders That Threaten Our Financial Health by Brad Klontz which gave me a perspective on how people learn to make financial choices because of events in their childhood, 
ways their parents dealt with finances or lack of financial know-how.
Luckily, I grew up with parents who taught us about money at every opportunity and were great role models. My parents passed on a wealth of knowledge, understanding and common sense about money. When I hear the terrible financial troubles some are going through as a direct result of their lack of self discipline or knowledge, I thank God for my parents and their ability to pass on something that has directly resulted in a life that is not overcast by financial hardship.
It may seem like common sense, but these are the ways I directly teach my children about money.
Modeling & Dialogue
The way I spend money and the way I save money is apparent to my kids, so I am a very careful spender/saver. I talk to my kids about the things we buy and how we have saved. Some of our best discussions happen in the car and in the checkout at Walmart! Money isn't the most important thing in life, and we don't discuss money all the time. We do find the opportunity to have important conversations, when needed.
Saving
I often take my kids to the bank with me and explain to them what a I am doing there. While I don't give them the full scoop, I normally tell them I am depositing money into my savings account where it will earn interest. This usually leads into a deeper conversation about where the money comes from, how interest is earned, and I answer their questions.
A few times per year, I take the kids to the bank with their own savings passbook and the money they've saved, to make a deposit. I show them the book and explain that the money is growing with interest.
The Value of Money
We try very hard to teach our kids the value of money. They may not get it now but they will someday. They see me using coupons, finding the best deals and making decisions about what to buy. We don't buy just because we have the money. We think about our purchases and we don't waste our money on things we don't need.
The Difference Between Wanting and Needing
While we may have the money to buy the things we want and need, we don't always buy those things. When our children want something at the store, we discuss whether or not it is a good way to use our money.
When I feel my kids have all the knowledge they need to make the decision, I leave it up to them. I tell my kids to make the wisest choice and to buy it if they feel it is the best choice. They often decide to keep their money in their pocket!
For larger purchases, I tell them we are going to think about it until a certain future date. When that day comes, I ask them if they still want the item. Often they've decided --NO.
Hard Work
My husband and I work hard for our money and that is apparent to our kids. But what is also apparent to them is sacrifice. If we don't see them comprehending how we get our money, we simply explain it. If they don't see how we sacrifice certain things for others, we tell them.
Allowance
Allowance has been off an on at our house. While I feel it is good to learn to work for our money, it seems with school and activities, it is hard to keep up with it. This summer we are putting our best effort towards an allowance system (more on this in Part 2).
Spending
We don't want our kids to end up being "stingy" savers either. We want them to make informed decisions about spending and to feel good about their purchases. So if they want something badly, we allow them to think it through, save up, and purchase that item.
What you teach your kids now will lead to successful financial independence later, that's for sure! We all want what's best for our kids. If you have a great money strategy, story, or way to teach your kids about money, we'd love to hear it. After all we can all learn from each other!
Stay tuned for Part 2: Teaching Our Kids to Save, Spend, Give and Invest.
this week for just $3. It is available at Walmart, Target, ToyRus and Kmart. If you'd rather not check your stores for deals, you can get it right HERE at Amazon
And yet more craft events! Amy emailed to let me know that Bass Pro Shops will host free crafting for kids for THREE solid weekends! Oh the choices! I personally like the Reindeer Hat! My kids would probably choose the cookies. :)
If you live near a Michael's, you might want to treat your kids to this free event on Saturday, December 5th from 10 a.m. to 1:00 p.m. We would be all over this if we didn't have such a long drive to Michaels! Kids can even make all three crafts! Go here for all the details.
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