The following is a guest post from Sara.
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In Proverbs 22:6, the Bible tells us very specifically to: “Train up a child in the way he should go, and when he is old, he will not depart from it.” The Bible wants parents to teach their children the ways of the world – including how to make smart money choices. Teaching children to save and spend wisely is essential to raising healthy kids, as it leads to smarter financial choices when they’re older.
Responsibility Leads to Reward
Children can be earning what they receive. In the adult world, in order to collect money, you have to work hard for it. This reality is sometimes overlooked by parents, who simply want to provide their children with what they need and want. In order to prepare children for the future, make sure they understand they’ll also need to work hard for new items and money.
Set up a weekly allowance for your kids. Designate some chores to your child and let them know they’ll receive their allowance at the end of the week. Much like a job, your child will be required to do well, in order to receive their paycheck on payday.
Make Saving Fun
Children may want to run right to the candy store to spend their money, so it’s your job to remind them that saving their funds will result in more expensive items. The first step in creating a smart saver is to make saving a fun and creative experience. You may want to paint a piggy bank or old jar with your child. They can store their money here and watch as it fills to the top.
When children are saving for something specific, the process becomes a lot more fun. Ask your child what they really want, like a new computer or tablet. These items aren’t cheap and will require that your child saves for a long time. When their jar does become full, take them to purchase the item or to the bank to make a deposit into their account.
The bank is a fun place for children to learn about money. Bank tellers often keep small candies and suckers to give to children, making the trip rewarding. If this is your child’s first visit to the bank, don’t be afraid to ask the teller to introduce themselves and explain what they do. This is also a great time to explain how interest works and how money grows slowly in the bank, so it’s worth it to save for a long time.
The Big Payoff
Shopping is the big payoff, because it’s the time kids finally get to spend some of the cash they’ve been saving. Your child has worked hard, saved enough, and is finally ready to make a purchase. At this point, you can teach good shopping habits. Introduce children to the world of coupons. They’ll begin to see how a single coupon can result in hundreds of dollars in savings.
Finally, when your child has scrimped and saved for an item, they’re more likely to take better care of it. This is your big payoff. You’ve been a really great parent by teaching your kids the value of a dollar. Now they’re being more respectful to their possessions. Plus, they’ll be ready to start saving for something else right away!
Mark says
Great post! Kids need to learn how to earn money and how to save them as early as possible and by following those ways you said, they can learn it easily and at the same time enjoy them by doing it. Thanks for sharing this.
Rhoda says
Don’t be afraid to teach them to tithe right off the top of any monies they get in. By learning young to put God first, including their money, they will have a better perspective of that money and their responsibility with it, including giving back to God what is already His. My children love being able to put their own money in the offering plate.
Rebekah says
Thank you for sharing, Sara. I teach my daughter that we never buy something the first time we see it. :-) To add, I think it is too easy to become addicted to shopping/spending and to have our focus be on what we can get with our money. I want to teach my children to pray about what they should do with their money. Money is a tool. They could be using their money to bless someone else…with a present, a homemade item, a special trip/ticket. We need to see our money as less ours and see that it all is God’s. And I disagree. Instead of teaching our children the ways of the world’s systems, we need to be teaching them the ways of the Kingdom. Our family is just starting that journey, going deeper into what the kingdom of heaven really is. http://www.scrollpublishing.com has the many resources we are using to understand more about Kingdom finances, laws, and blessings.
Jean says
I do hope shopping is not the big payoff! I agree with Rhoda and Rebekah – our children should be learning that money saved can be used for good deeds for others, our own financial security, and our first priority is to give back to God. The computers and other “stuff” is not what’s important about saving.
Laura says
Yes, very true! I should have taken the time to add some of my thoughts to this guest post. :)