teaching kids to manage money

Any helpful hints that you've used through the years that teaches children how to manage money?

When I was a teenager, my mom let me pay the monthly bills. I wrote the checks and balanced payments, etc. It was a real lesson in where the money goes. I need to do the same with my kids.

Check out the book written by Mary Hunt that's for teens. She is the author of Cheapskate Monthly and I know her simple plan for us big people is fantastic...can't imagine the one for teens being any less. But I confess I haven't read it.

I think one lesson that parents tend to leave out when they are teaching the kids "the ropes" of money management is the VALUE of money. It is just a tool, not to be worshipped, coveted, or loved. Please make sure you don't forget to add this important lesson. The Bible doesn't say that Money is the root of all evil...it says THE LOVE OF MONEY is...I couldn't agree more...

So....send me all your money and I will love you forever. What? You ain't buyin' it?

JJ

I think the best way to teach a child is lead by example. Those darn kids are really observant and do as you do, even if you're not seeing it all the time. When they get older, they'll fall back on what they learned from what they saw you do.

Did that make sense? I hope so. The thought was clear in my head anyways.

Vicki, yes you are right, lead by example.

I have a regret in this money area. When our oldest was very yound and got a littel allowance, we taught him to save a third, give a third to the church, and use the other third for his little treats. Oh how I wish we had kept that habit. He probably doesn't even remember it.

I got a kick out of my daughter while shopping with her this summer. She found a skirt for 3 or 4 dollars on a sale rack. She was proud of herself when it fit and she purchased it with her own money.

You go girl! That's my little girl.

She's also the same one who spends $6.00 on two chocolate covered strawberries and brings them home to her brother and me. God love her! I'm gonna have to tell her she could get a couple shirts to go with her skirt if she stopped buying chocolate covered strawberries.

My seven-year-old daughter has her own bank account. Together we visited the bank and opened it. She deposits allowance money (earns a $1 per week for basic chores like cleaning up her room and helping Dad in the yard). We allow her to spend 1/3 of it on whatever she wants. Right now she's saying for an American Doll. Do you known how much those dolls cost?? The remaining money is saved and tithed.

Now, my little entreprenuer is scheming about ways to make more money so that she buy the American Doll sooner. Current ideas are to have a garage sale, sale her artwork or sell her old stuffed animals to friends and neighbors. Of course, I'm encouraging her and trying to help her figure out a productive way to make the money. But, I like the way this child thinks:).

That's sooo cute how she's using her noodle to think thru this and get her prized doll. Good for her I say! What about a lemonaide stand?

Well, I'm sure if this 7-year old ever joins the Brownies or Girl Scouts, she'll be a leader among them!

JJ

My challenge is trying to figure out how to keep up with her. Surely don't want to dampen her little spirit, that's for sure...

So, yep...in a week or two we'll be sitting in the front yard selling something, I'm sure

Queen Me, I love her spirit. I wonder where she gets it from...

Does the apple not fall far from the tree?

Maybe she can decorate tiaras with ribbons and sell them.

I recall a kit my daughter had when she was younger. It was precious. If I'm not mistaken there was a wand and tiara with all kinds of glitter, ribbons and sparkles for decoration.

Just a thought, but I bet she could make some glitzy tiaras...and SELL them.

I also remember the American Doll craze that went on for several years. Those books are the best. Excellent ways for the girls to learn history.

Liked your idea. Today she announced she wanted a job just like mine....meaning she wants to write books.

So, first the curbside stand and next her own website to market her book:).

Ha!

I'll keep you posted on what we figure out. Although I'm not very familiar with e-bay. We have discussed taking pictures of her stuffed animals, books and toys and trying to sell them on-line (via e-bay). Have any of you done that before?

No help here, but lion has experience with selling things on ebay. Lion?

Queen, I too have sold many things on Ebay and buy there as well. I'd be glad to help you and your daughter get started. Anytime you're ready just let me know.

Hey Lion between the two of us we'll have her up and running in no time. Where are you on Ebay? I want to go shopping.

I would give my sons an allowance for the chores they did around the house and they both knew that it had to last them until the following week and if they wanted anything major like a bike or a boat for fishing I would match them dollar for dollar but thats all. If they spent foolishly, oh well!! They did pretty good but the eldest was a bit more frugal than his brother who ate his way through most of his cash. He loved snacking on junk food which I never bought....My eldest learned so well now he lends me money, haha!!

My mother in law was so frugal, she would tear a piece off a brillo pad and only use the piece. "No use wasting the whole thing on one cleaning".

Her son, my husband spends money like there is no tomorrow.

He did not learn from example.
But i do struggle to teach my son the value of money. He is 5 and grasping it is hard. I don't want ot tie it to chores since I beleive everyone in the family has chores because we work to help each other out.

But Nathan is a spend freak too and I need to get a handle on it.
Lynn

I have a tip on out of control wedding expenses for anyone facing those bills with their children in the near future. We gave our daughter (who never had to budget anything...daddy was always there!) a number. The number was what we were willing to pay for everything associated with the wedding. If she went over, she had to pay. If she went under, she got the balance in cash. It worked like a charm; she decided what her priorities were, compared vendors, pricing, made some of her own decorations, opted for a less expensive dress than the Vera Wang number in the catalog, decided that some of the high school friends that she hadn't seen in 5 years really didn't need to eat and drink at our expense, etc. It not only taught her the value of money (finally), she made realistic decisions without my intervention, ended up getting a nice sum back, and we didn't have one argument in the planning process. The whole experience was delightful!

WizardofZA, what a wonderful idea, seriously that was brilliant. Wish I'd have thought of that when my sons got married. Of course the girls familys and I all pitched in so it was okay. What a great lesson your idea is for any young couple.

wiz, that sounds like the perfect approach to the situation. It takes the pressure off of the parents and teaches the kids how to be careful about how they are spending Mom & Dad's hard earned cash!

I believe alot of managing $ is in your gene makeup. I was always a saver and would dream about something, save my $ and then buy it. It really meant alot. I just donated, unable to sell even for $5, the typewriter I bought for about $60 while in high school. I paid for it with my savings, most coming from babysitting at 50 cents an hour. That was alot of babysitting. I still save money, I saved for 4 years to add onto my house. My brother on the other hand goes through $ like it is water. He never knew how to save. We can just try with our children and hope they got the right genes and watched what was done at home.

Hmmm...all this information is giving me great ideas. My son believes in total abundance. Why save when there is always more? If I don't give it to him, he finds another source.
My therapist recommended giving him an allowance with no strings to teach him. She also believes he will learn by example.
A cute gimmick I saw was a ten year old girl who bought cheap flip flops and decorated them. Then she sold them for $10. Cute--she had twisted balloons around the strap part.

Renegade, I must have seen a segment on the same little girl. Waht a creative little girl.

How old is your son? We've done different things with our kids and money depending on their age. Now all three are working and they have their own spending money. Can't beat that!

My son is thirteen years old. I would appreciate any advice you have for me!
R.