Here’s a real life example of a great way to teach your kids about money.
I was on welfare for a while when my kids were younger. Of course, getting only one check per month made the lack of cash flow more obvious. One day, when I said we couldn’t afford something, they asked, “Why not – you just got that big check?!”
So, I sat them down and wrote the numbers down side by side. I wrote how much the check was on one side and how much I had to pay to others on the other side. I subtracted as I went and they saw the “big” check going down faster than they realized.
They never bugged me after that quite like they had before. I derived the idea from a different idea about how to show kids the realities of cost and the dreams they have about sports cars, big houses, etc. I just adapted it for my situation. I know most parents don’t really want to tell their salaries, but sometimes it can help kids to understand when things are tight.
-Wendy
This is a great idea. I have never understood why parents won’t tell their kids their incomes and let the kids sit down with them while they are paying the bills. This is probably one the best things you could ever do with your kids.
-Tawra
Not only that, but it teaches and gives children a better idea how to use a checkbook, balance a checkbook, be responsible with credits cards and generally make better financial decisions. I am so surprised about how many adults don’t have a clue where to begin teaching their children any of these things. Once again, it shows how important it is to train your children in every area, including finances.
-Jill
Photo By: Betsssssy
i definitely agree 100% tawra… we did this too bc when our son was younger and saw dad’s check, he thought we just went to the bank and deposited it, never really realizing the bills that needed to be paid… so, my hubby sat him down and told him the bills and of course, after all the deductions, there was hardly anything left… my son was like in shock! .. but it was the best lesson he has ever learned bc now our son is almost 19 and when he sees those credit card offers in the mail, he rips them up and throws them away… hopefully, he will stay on this path!…
hope ur feeling fine these days tawra! :D
thanks for all you do …
rose :D
Thank you for giving your child and us this gift Betssy. Children need to be aware that life is expensive, and to dicipline themselves to what is important like a home, utilities, education, etc. I hope this inspires more parents to be this honest, wise and loving with their children.
I teach my kids everything I can about money. I try to turn everyday situations into learning experiences. In such a short time, they have learned what short and long terms savings is, how to deposit money into a savings account, how to devide their money between savings and spending, how much change it takes to make a dollar, how to use coupons and what they mean, what the difference is between wants and needs………..and most important of all – if it isn’t on sale then we do not buy it! They are 5 and 6; even at that age, they are better with money than most of my adult friends and family.
Yes kids can learn early about money. I always laugh because when my kids were about 9 or 10 I sent them on their bikes for the first time by themselves to buy me some bread. They came busting through the door saying look mom we checked all the bread careful and we found this one on clearance. They were so proud of themselves and beaming from ear to ear. I so often think we do our children an injustice by not teaching them these things because they really feel good about themselves and what they do.
I bet that clearance bread tasted the best too.
My WWI surviving grandmother and parents taught me their frugal ways too and I run my government programs the same way. I just suggested a way to save $1,720,000 at the government Department where I work.