Teaching Children About Money

I grew up in a household where my mother valued money and security and my father encouraged a spiritual path without money. Obviously, growing up between these two extremes made me very confused about what money meant to me and how to manage it as I got older.

I decided a long time ago to educate my son about money and the responsibilities that revolve around making it, spending it, and saving it. At the age of five, I started giving him a small list of chores that he could manage. At that age, he was able to wash his hands and face in the morning and night, help me clean the table after meals with a sponge, feed the cat, and put on his own clothes that I set out. I helped him remember his daily chores by writing them down and putting little pictures next to them in case he could not read the words very well. Each week he did most of his chores, he got an allowance of $1.

Now, he makes about $2.50 a week and the list has expanded, the same principles are involved. He is learning the value of his contribution to the household. I give him a great deal of praise for getting his chores done. I also let him know that he needs to do his chores or he will not get his allowance for that week. We have agreed together that he needs to complete all chores for five out of the seven days of the week.

I bought him a wallet that he picked out when he was five. This is the wallet he keeps his allowance and gift money. This is the same wallet he has to remember to bring if he wants to take it out to spend his money somewhere. Letting him use the money he made and make his own choices about toys, books, and treats has given him a sense of understanding about how much things cost. Spending his own hard-earned money for a $20 toy is a decision making process. He has to decide if he is going to get something small and have it now versus save for a few weeks and get something of more value.

As he got older, he was able to open a bank account in his own name with his own debit card. Most banks have a junior account will low balances just for children. It gives them a chance to balance their own accounts and see how saving money will allow them to earn a small interest.

I think it is also very important to let them go up to the register and pay for the item his or herself because they make contact with the person at the register. This is a great time to use their manners and express thanks to the people who work in a store. It will also give them a sense of pride that they gave the money and change without the help of an adult.

Start your children’s healthy relationship with money at an early age. It will give them a foundation to work from for the rest of their lives.