Do you remember when you were a kid and your parents told you that you had to save up your money to get something you really wanted? Maybe your parents didn’t teach you that particular skill when you were younger but you wish they had.
Listen, it’s never too late to learn how to be a good manager of your finances. In fact, I am currently registered to go to my first ever Financial Peace class this week with my husband… and I’m 34! But, I think it would have been a bit easier for us both if I had learned how to save money when I was 5. Just saying.
I did some research (and since I’ll be attending a Ramsey-sanctioned class myself) to find some practical tips and suggestions on working with our children to teach them this crucial life skill. The article that I used for reference was posted on the DaveRamsey.com website and while everything in the piece is quite informative and helpful, I chose a few items that I feel would be best for my family (and hopefully yours). Please feel free to investigate more about the other suggestions on your own!
The few key points Ramsey suggests in teaching your Elementary/Middle School Child effective money saving strategies are:
- Showing opportunity cost
- Give commissions instead of allowances
- Stay away from impulse buys
- Make “giving” a big deal
Opportunity cost is a way of explaining to your youngster how to make decisions and weigh the outcomes before making a choice. This strategy would be great for older kids who seem to understand that “money doesn’t grow on trees.” My first grader, she is still learning this concept and would likely argue that she has SEEN it grow on trees. EYE ROLL.
Next on the list discusses giving commissions rather than allowances. Paying your child based on what they have done and giving them a chance to earn their money will help them feel more ownership to it. In my house, we like to assign different values for different chores. There are also TONS of ideas on Pinterest for chore charts, responsibility boards, etc. That will an article for another day!
Impulse buys are the worst!I don’t know about you, but anytime we go to any kind of store my children are always begging for something in the impulse aisle. I detest taking my kids shopping for this reason alone! Funny, though, I remember doing the very same thing to my mom when I was my kids’ ages. The article explains that teaching your child to use their hard-earned commission is wise and will help them think about the purchase with more clarity. Yeah, the guilt kind of gets me on this one - I may or may not have purchased a candy bar that I really did not need. Next time, I will set a better example!
Giving is often overlooked as a money saving tactic. Maybe it’s because the money is not actually in your own pocket anymore? I can tell you from first-hand experience that giving makes you feel fabulous! Let’s be real, money can weigh us all down. When you have it, you stress. When you don’t have it, you stress. Our children are no different. Giving is important because it leaves room for you to grow as a person.
As I said before, this piece gives lots of great suggestions and tools for helping your children learn how to be effective stewards of their money. Use bits and pieces, use it all, or come up with your own plan to teach them how to be money wise!
