Money. It’s something you can’t live without and is a wonderful tool for our daily lives, but it can also be very destructive if not used properly. I am definitely not an expert on finances and certainly have had my share of struggles in this area. Because of our poor choices early on in our marriage, my husband and I want to prepare our kids to be financially responsible adults. This is even more important, since technology and banking has changed so much the past few years and will continue to do so.
A few years ago, I was listening to a radio broadcast featuring Mary Hunt, an author, blogger and founder of Debt Proof Living. She was discussing her book, Raising Financially Confident Kids, and I was intrigued. I went home and ordered the e-book so my husband and I could start reading it immediately. We loved her approach to teaching kids financial responsibility and decided to use some of her ideas with our own kids.
It’s hard to teach financial responsibility without your child having a steady income.
Up until this point we had given some chores that you could earn money by doing, given allowances, and tried to teach them financial responsibility, but it’s hard when they don’t have a steady income. (Well, to be honest, we as parents really stink at chore charts.) We decided when they turn 13, we would take a trip to the bank to set up a checking account along with a debit card that we parents are joint on. They would start to receive a bi-weekly “salary” of $40 that we would deposit into their account. From that $40 they would need to budget for toiletries, clothing, eating out, activities, hobbies, gifts, saving and giving. The amount of their “salary” is subject to increase yearly and also if they can give us a valid reason for an increase, besides foolish spending.
Giving our children the opportunity to make mistakes financially now will hopefully save them from making large financial mistakes in the future, when the stakes are much higher.
Since implementing the plan, our older two girls have learned to balance their bank account, transfer money between savings and checking, use a debit card, and budget wisely. Back to school shopping is always an eye opener for them when they realize just how much those cute shoes or jeans really cost. My girls often head to the clearance section, have a love of TJ Maxx, and usually are all-around wise shoppers. Sometimes they splurge, but when they do, I know it’s something they really want because they are willing to part with their cash.
As parents, an unexpected benefit of the budget, has been the joy of watching them give.
There is no nagging from us as parents to give, we leave it up to them to decide where their money goes. We love watching them buy gifts for siblings and friends, give money to causes at church, school and within our city. The best part is, it’s giving from their heart, and they give generously.
While I don’t always agree with their purchases, it’s “their” money, and they choose how to spend it. They will learn the valuable lessons of buyer’s remorse, needs versus wants, patience, wisdom, and hopefully the thrill of watching a savings account grow. Hopefully as parents, we did our best to equip them in making wise financial decisions and use money as a tool to live a generous life!
