Top 5 tips for teaching kids about MONEY / Things that helped ME teach my children financial responsibility

As a mom of three financially responsible boys (ages 15, 17, and 19), I'm often asked questions about how I taught them about money. They aren't perfect, but they have have strong work ethics and make smart decisions about money. I'm not an expert, but today I am sharing the FIVE things I'm happy I did.

1) I never gave my children an allowance. I never handed them cash for no reason, and I never paid them for doing chores around the house that I expected them to do anyway. I did, however, help them earn their own money. I helped them sell old toys, and I assisted them with a small “cookie mix” selling business. They also babysat and delivered newspapers, and when they turned 16, they got jobs.

2) I talked openly about money with my children from a young age. They often saw me pay for things with a credit card, so I made certain that they understood how credit cards worked. I showed them the bill when it came in, and explained how I paid for it from the money I earned at my job. I also talked to my children about saving, investing, and paying taxes.

3) I taught my children the difference between a want and a need. This seems like a simple lesson, but it is a difficult one to teach. From an early age, the rule in our house was always “We buy you what you need, and you buy what you want.” For example, we paid for the hockey stick they needed, but if they wanted the “latest and greatest” model, they were required to contribute the additional funds.

4) I introduced my children to the concept of delayed gratification. It’s important for kids to learn they can’t get everything they want, and they can’t always get the things they want as soon as they want them. One way I taught this lesson to my children is that I never gave my kids phones with phone/data plans. My husband and I made a rule that only people that can pay a monthly bill can have a phone. It was tough for our kids to understand why they didn’t have a phone like other children their age. However, now that they have jobs, they all have phone plans that they pay for, and they appreciate the concept (and responsibility) of paying monthly bills. They also watch their data usage carefully.

5) I tried to set a good example. My children have always seen me shop for sales, buy and sell second hand items, pack lunches for road trips, cook at home rather than eat out, and DIY home projects to save money. They see my husband and I living frugally (and within our means), and it is teaching them to do the same.

My boys are still relatively young, so there is still time for them to make money mistakes, but I hope I've given them a good start. 

These are the things that worked for me, but I'm curious... what worked for you?

💗

Gina (aka East Coast Mommy)

Teaching Kids about Money

Teaching my boys about money and finances has always been important to me. I feel it my duty as a mother to educate my boys about spending responsibly and saving for what they want. Today, I am sharing some of the ways that I am teaching my children about money. I am also sharing a FREE digital activity book for kids that you are going love.

It's never too late (or too early) to talk about finances. When my boys were very young, I focused on teaching them the physical value of money. In a world of debit and credit cards, I wanted them to understand that money is a tangible thing. We talked about money and sorted it into jars. I wanted them to see what a dollar looked like -- 100 pennies, 20 nickels, 10 dimes, 4 quarters, and a loonie. I also took them to stores to show them what a dollar could buy.

I have also always taken my boys with me to the bank whenever I have had a deposit to make. I wanted my kids to understand that I work for money, I put the money in the bank, and then I take that same money out of the bank with my debit or credit card. I stressed that money is a tangible item that we earn and spend. Debit and credit cards are not magical items that allow us to buy whatever we want.

As my boys got older, I focused on teaching them about wants vs. needs, and the importance of living frugally and saving for what they want. We have an open dialogue about what things cost and how our family spends money. My boys know that we sell items we no longer need and purchase second hand items often, we buy things on sale, and we save for what we want. They also know that eating out is a special treat and that we pack lunches and snacks when we can.

Recently, my boys wanted to purchase a TV for our basement, and I told them that they would need to save for it. We sold some of their old toys, and collected the money in a jar until they had enough. Visually seeing the money collecting in the jar was a fantastic way to teach them about saving for something they wanted.

A wonderful way to open a dialogue about money with your kids is to use books in addition to real life situations. TD Canada has a fun and educational activity book that my 9 year old loved. It is full of wonderful information and games that your kids will enjoy. You can get the digital activity book for free here. You can also learn more about getting financially fit from TD here.

As my kids grow into adulthood, my husband and I will continue to educate our children by giving them an allowance, showing them how to open a bank account, and teaching them the importance of budgeting and living within their means.

Your child's first financial teacher is you. When you teach them is just as important as what you teach them. Start young by fitting lessons into your everyday life. Your kids will learn valuable lessons without even knowing it.

How do you teach your kids financial literacy? I'd love to hear your tips and tricks. Please take a second to leave them in the comments below.

♥
Gina Bell (aka East Coast Mommy)

Disclosure: This post is part of the YummyMummyClub.ca and TD #FinanciallyFit sponsored program. I received compensation as a thank you for my participation. This post reflects my personal opinion about the information provided by the sponsors.