Teach Your Kids About Money – Part 05

In this series of posts, I am sharing some different ways that I am teaching my daughter about money.

Step ONE:  YOU have the primary responsibility for teaching your children about money!

I have more influence on my daughter's money management skills than any other.  What I teach her will have a direct impact on her life and generations to follow! 

Step TWO:  Walk The Talk

Live it out loud.  My goal is to show Melea that everything I am teaching her is relevant and can be practically applied to her life. 

Step THREE:  Provide opportunities for your children to learn about money

A $18 lesson at age five can prevent an $18,000 lesson at age 20.  Which one would you choose? 

Step FOUR:  Teach the Key Principles!

I have negelected my parental duties if I don't teach Melea the lessons I teach thousands of others every year! 

Step FIVE:  This is a PROCESS not a one-time conversation.

This is not a one-time conversation.  Learning is a process.  It happens over time.  With multiple conversations.  With both good and bad attitudes.  In different situations.  It is intentional.

What Jenn and I have taught Melea so far has been intentional.  We plan on keeping it that way.  As we approach the next 11 years of her life with us, Melea will be taught many more financial and life lessons.

To wrap up this series, I thought I would share some of the lessons that are upcoming for her.  Some are new and some are continuations of lessons already in progress.

  • God is the owner.  We are managers.  We are teaching Melea that everything we have is from God.  Luke 16:10 resounds through my head.  There is a good potential for Melea to be left with a great inheritance (something the Bible says we should do – Proverbs 13:22 says that "a good man leaves an inheritance for his children's children".  If we don't teach her to be a great manager, her life could be ruined by the inheritance!!!
  • Giving and saving are top priorities.  This lesson is already in process, but it will continue to be reinforced.  There is nothing more satisfying than giving to a worthy cause and saving money for God-given hopes and dreams.
  • The fundamental business concept of "profit".  It is amazing how many business owners forget this concept!  Melea will know this concept forward and backward!
  • It is OK to wait to make a purchase.  Debt is not worth the immediate gratification.  The gratification will go away, but the debt will visit monthly.  This WILL make me turn in my grave!
  • Learn the most powerful word in the English language – NO!  Already in progress on this lesson!  It is so important to have self-control.

That's it!  I hope that this series has helped you gain a few ideas on training your children about money.

Question Of The Day:  What ideas have you put into practice as a result of this series?

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3 Responses to “Teach Your Kids About Money – Part 05”

  1. Julie Brown September 28, 2007 at 3:28 am #

    Thank You! Thank You! Thank You! I will be printing these posts out and keeping track of what we are doing with the kids. Money management is so important and I really do not want my kids making the same mistakes we did. Thanks again!

  2. Susan Beacham September 29, 2007 at 12:59 pm #

    I have been following your series and am so pleased with all you have to say. All of your points are right on and when your daughter is older she will have been very lucky to grow up under your wise guidance.

    I’ve been in the business of helping kids get smart about money for nine years now. It’s my passion and nothing makes me happier than when I am working with kids. To try to help other parents teach their kids the curcial skills of basic personal finance I write a monthly column called the ABCs of money which is syndicated in parenting pulbications all over the country such as LA Parent and Chicago Parent. I also have created a series of tools that parents find useful such as our Money Savvy Kids @Home kit. Interested readers can find our award-winning materials at MoneySavvyGeneration.com

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