I have noticed somewhat of a disturbing epidemic going on in my hometown lately. No, it’s not a medical disease or plague, but it is something that I am very concerned about, and it seems to be affecting many more children today than it did in the not-so-distant past. Children seem to know nothing about money anymore.
Money is Handed to Them
I understand the thought process of parents. I really do. They grew up with only a couple of toys and lost much of their childhood days because they had to work and help provide for the rest of the family. They don’t want their kids to suffer like they did.
So, what do they do? They hand over cash to their children who did absolutely nothing to deserve it. They love the bright-eyed smile they get when their kids see them reaching for their wallet (or purse for you moms out there). The only problem is, they are hindering the future of their children because they know nothing about how that money got into your pocket!
Why Don’t Kids Work Anymore
photo credit: KrissZPhotography
Kids can’t find jobs anymore – there are age restrictions.
My older brother is currently 35 years old. When he was a kid (I think as young as 8 years old), he could pick blueberries in the summer time to earn some extra money. I wasn’t able to find a job until I was 14 (I worked in the local greenhouses, trimming plants). Today, kids can’t get a job until they are at least 16! This makes it pretty tough for them to save up for a car!
So, How Can You Teach Them About Money?
- In order for kids to learn about money, they’ll have to earn some money. Here are some great ideas from a few parents I’ve spoken with.
- First and foremost, make sure that your children are doing chores pro bono (that’s right, no money). They need to learn about household responsibility before they can begin to respect their finances.
- Reward your child for reading certain leadership or finance books (your choice of titles)
- Encourage them to brainstorm some money-making ideas: mowing the neighbors’ yard, washing windows, weeding the landscape, washing cars, etc.
- They can earn money online. There are kids today that can program Apps in a few hours. Or they could start there own blog from their interests. There are lots of options online.
- Create a business venture yourself, and offer them some compensation for their help.
Kid’s Will Respect What They Earn
It’s amazing how much better kids take care of something that they paid for. I personally saved up enough money to buy a truck when I was 16 years old. It wasn’t brand new (it actually had 172,000 miles on it when I bought it), and it didn’t impress my friends, but I loved that truck. The kids that got trucks from their parents took them to Silver Lake and beat them up on the dunes. Personally, I didn’t go anywhere near Silver Lake. I knew that if I broke something on my truck, it was my bill.
Are you teaching your children about money? Have they responded well to something that I have not mentioned? What jobs can kids still do at a young age?
Derek
This is a guest post written by Derek from Life And My Finances. Derek currently has his degree in Finance and enjoys writing fresh, new financial ideas on his website. The purpose of his site is to help people “Get Out of Debt, Save Money, and Be Rich.â€
Thanks for the refreshing perspective. When I was 12 I worked for my mom in her store. Then I delivered papers before washing dishes.
This taught me how to earn money though there is so much more to it than juts exchanging services. It comes down to providing value to other people and being able to build relationships to know what other people want.
Kids do not know about money and most teachers are broke!
Financial literacy is extremely important–more than ever today–and there are countless ways to add value to other people especially with the internet tools.
I agree with you–parents cannot hand over money with no lesson or value exchanged. It is almost like handing over a cell phone or the computer with no supervision or instructions (not unlike handing over a chain saw!).
I think the best way to teach kids the value of money is to make them work for the money that they get and let them spend it so they realize how much they have to work in order to get that money back.
Quite true. I recently spoke with my older brother (41 years old), and I learned so much, just from his experience in life! It’s always great to get taught by someone that has already traveled the financial road.
Since my children are grown, I see the fruits of teaching them about money. They are successful and good with money. Even as adults, we talk about a lot of things, so maintaining good communication and a relationship is important.
I would suggest this, but only for older, mature children. The last thing you might want is your child spouting off your income and savings on the playground. If they are older and have an understanding of money and income, then I would say that this is ok. Great suggestion!
I would suggest this, but only for older, mature children. The last thing you might want is your child spouting off your income and savings on the playground. If they are older and have an understanding of money and income, then I would say that this is ok. Great suggestion!
Great article. The other thing I would suggest is to actually walk them through the family budget to understand that stuff is not free and unlimited.