“Mom, can you buy me a watch like this?”
“Mom, I want a four-wheeler for my birthday.”
“Mom! You never buy us anything!”
Am I the only one who hears things like this around the house? Please say it isn’t so.
I really was so frustrated with the thought processes our boys had concerning money that I was about to just snap. I mean, they thought I could whip out the debit card for any and everything their little hearts desired and that was that. Money had absolutely no value to them. That is not a good mindset in this day and age when so many are suffering financially. I want our kids to handle their finances better than the current “buy now – pay later” generation that is greatly suffering today.
So, I had an idea…
It all started with Carsten’s economics work. I remember looking at the textbook and thinking that he can’t possibly understand any of this without a proper revelation of the value of money. So I came up with a way to show him.
I used this form, Value of Money, to initiate this process. When we first started he loved being able to write down all of the things that he wanted to buy but as he got further into the assignment he began to realize some things about money. When he had to figure out how many weeks he’d have to work (chores, jobs at grandmas, etc) to earn enough to purchase certain things then it began to click. He also figured out really quickly what the difference is between a need and a want. He even started to do something I never dreamed he would do… he saved some!
Now I will admit the saving thing was short lived but he does have more in-depth knowledge of the value of money.
Some other things we’ve done is always make them use their cash at the register. That way they have to have the exact amount and they figure out quickly about how Uncle Sam gets his cut. I’ve also followed some advice that I heard at the Heart of the Matter online conference this year by Carol Topp. She said that if your kids don’t realize the expenses that come out of your paycheck each month then you can use play money to show them. Simply count out the amount of your paycheck and then, with the kids watching, deduct from it the expenses your family has each month. That way they can see for themselves where the money goes.
What about your kiddos?
Great tips. Thanks for sharing. Yes, my younger ones sure don’t understand the value of money. Though they already like it…even if just to play with.
My husband has been unemployed for quite a while (over a year) and because of that, our kids have come to understand the greater purpose of our money. Our older kids have learned that if they want something that is not essential to living they will have to buy it themselves. If they don't like the shampoo from the dollar store, they have to buy their own. If they want a cell phone they have to pay the bill. If they don't want clothes from the resale shop, they buy their own. This has created in them a drive for entrepreneurship. The boys mow yards, clean out garages, paint, etc… The girls babysit, clean houses, etc… They have become frugal because it is their money & it is very hard to come by. We did this before my husband lost his job, but now they know how much important it is so that they can help contribute & help out.
These are great, practical ideas, and I love the picture you chose. If only …
No! Then we would think we didn't need to depend on the Lord daily for our "Bread", and it's so much better to trust in Him. 
Those are some really good ideas!
I should also say that I don't think enough parents share about money with their children. Children should know there is a budget and what is involved in that. Nothing should be made stressful for the children, but they should know that money doesn't just come from an ATM or credit card (cheetah!!!…Dave Ramsey). We have to work to earn money, and then we need to be good stewards of what God gives us. My kids know that everything we have is Gods (they even remind us sometimes).
Last year, we used the Money Savvy Pig and workbook to learn about saving, spending, investing, and donating. This year, the kids are going through Financial Peace University (Dave Ramsey) with us. It's so important for our kids to have a healthy way to handle and understand to how make money work for them…not the other way around. Dave Ramsey has a similar approach with kids as we do…some things they must do just because they are a member of this family, but other "chores" they may chose to do to earn commision. Then, with the commision, they need to chose what amouts go to save, spend, and donate.
Yep, for a long time. But now they both work..mowing lawns and detailing cars…the other babysitting. They understand money a whole LOT better now!
What a great idea about the play money! I'll have to use that one.
Oh – this is SO smart! I LOVE the idea of play money. My kids NEED this stuff. My daughter especially. Thank you SO much, Amy!