kids finances

Teaching Kids About Personal Finances

As a disabled, stay-at-home mom, teaching our daughter about money is something I believe is important.

I want to save her the heartache of poor financial decisions I experienced.

Even though she is only six years old, I have found several ways to make learning about personal finance fun and engaging.

No Allowance – Unlike many of her friends, our daughter does not get an allowance.

kids money habitsWe know that the only way to make money is to work for it – to actually earn it.

She needs to learn early that you can’t get something for anything.

Our daughter is paid for doing additional chores around the house, but only for things, she is not expected to do anyway.

Tithing – The first thing I ever taught my daughter about money was that she should tithe the money she has.

I learned as a small child that I could do much more with 90% of my money than I could with all of it after I gave 10% of it to God.

Saving – Our daughter is learning that she must save a portion of the money she earns.

At the moment, we have her saving 10% of the money she has after she pays her tithes.

Her savings goes into actual savings account that her father and I contribute to as well.

We all make the trip to the bank and she makes the deposit herself.

We help her to see how her money is adding up and explain how she can use it for college.

Spending – I take special care to watch how our daughter spends her money.

Although her math skills need some work, with a little help, she is able to figure out if she has enough money to buy something she wants.

I help her to understand how long it will take her to save enough money for specific items.

Costs – I always take our daughter shopping with me so she can see the value of using coupons, comparison shopping and finding the best deals.

She understands that we have a specific amount of money that is to be spent and we can not go over that amount.

She works hard to help me find ways to stay under that amount.

I love to the wheels in her head turn as she crunches the numbers with me. She even gets excited when we spend less than we had expected to.

This may sound like a lot of responsibility for a six-year-old, but we keep it fairly simple and make it into a game for her.

I am hoping these lessons will last her a lifetime.

If she can learn the value of money and the importance of saving money now, it is more likely she will use that information later in life.