The dreaded F-word looms large in our household: Finances.
My husband and I come from completely different economic backgrounds, and we’ve worked pretty hard over the years to find a middle ground where we can calmly discuss our family’s finances. But with so much emotion and difference of opinion mixed into many couples’ money conversations, how do you raise kids who are not only financially responsible, but also have a healthy relationship with money?
Of course, the first place to start is by looking at your (and your spouse’s) relationship with money. Are you nervous to look at your credit card bills when they arrive? Or do you know down to the penny what you’ll be paying with a quick look at Quicken?
Two great, easy resources to help you and your spouse get in financial sync and set long- and short-term goals are www.Mint.com and the online tutorials at www.Credability.org/Education. And once you’ve worked on your own challenges, it’s time to teach the kids.
Part of the Equation
Combine basic addition skills with money management at the grocery store. Have your kids compare prices of similar items. My daughter couldn’t believe the difference in pricing among spaghetti noodles during a recent visit to Price Chopper! It was a fun, no-stress way to introduce comparison shopping and to start the conversation about the cost of things. Days later, she set up a “store” with her brother, complete with price tags and credit cards for her shoppers to use.
To Give or Not to Give Allowance
The topic of allowance is viewed differently in every household. Once your child is old enough to do regular chores and understands the concept of money, you may consider giving him or her an allowance. Whenever you determine the time is right, it’s important to talk to your children about their options. Do you want them to save a certain percentage? Give some to charity? Or can they spend it as they like?
Give Them Choices
It’s hard to understand the difference between needs and wants, so the next time your child “has to have” the latest game or toy, let him save up for it. Whether the hula hoop I bought as a kid, or the Subway Surfer app my daughter recently paid for—a child’s first “very own” purchase is an exciting milestone.
Bank on Their Future
It may sound old-fashioned, but taking your school-age children to the bank (online or in person) to set up their own savings accounts definitely sets a more serious tone. I remember going to the big, blue Capital Federal bank building with my mom and sister when I was a child, and the excitement of receiving my very own bank book. My parents took the time to explain how my money would earn interest, and I loved seeing how much my tiny savings account earned each quarter. I put birthday and holiday money into the account, and over time, watched it grow. In fact, what started as a teaching tool ended up being a nice little savings cushion when I graduated from college and lived on my own. Not such a bad lesson after all!
Jane Blumenthal Martin lives in Overland Park with her husband and two children. Read Jane's blog for working parents at www.ArtOfEqualParenting.com.