| There are two very important reasons why parents | | | | damage or lose an expensive item due to |
| today must put effort into teaching their children about | | | | carelessness, it is not replaced. They must earn the |
| the value of money. | | | | money to replace it either through allowance or |
| 1. Society teaches plenty about the pleasures that | | | | through work outside the home. |
| money provides but little about what it takes to earn it | | | | 4. Teach kids to give some of what they earn to |
| and use it responsibly. | | | | charity. One important way to gain appreciation for |
| 2. If you do not teach your kids what it takes to earn | | | | money is to give it away to those who need it more. |
| and manage money wisely, the world will teach them | | | | We expect our children to be generous with what |
| and the lesson will be much harder once they are on | | | | they have. We let them see mom and dad donate to |
| their own with no safety net to fall back on. | | | | charities and ask them to do the same. Most kids get |
| Below are a few of the strategies my wife and I have | | | | a great sense of satisfaction in giving to the poor and |
| used to teach our kids about the value of money: | | | | this can become a habit that stays with them for life. |
| 1. Give allowance as early as 7 years old but tie it to | | | | 5. Avoid comparisons to other families about money. |
| the contributions they make to the family. My kids | | | | Kids love to keep score. Avoid talking about whether |
| have each received a small allowance starting at age | | | | you make more or less than your neighbors or |
| seven. But along with the allowance have come | | | | relatives. Teach kids that what's most important is that |
| responsibilities to the family. These start out as simple | | | | you earn the money your family needs to provide for |
| chores such as emptying the trash, cleaning their | | | | their well being and enjoy some of the comforts of life. |
| rooms or doing the dishes, but evolve into more | | | | Focus on money as a blessing that requires sacrifice |
| complex work such as baby sitting siblings, lawn work, | | | | and does not make us any better or worse people in |
| preparing meals, etc. As the complexity of the work | | | | and of itself. |
| increases, their allowance increases. | | | | 6. Encourage your kids to get jobs - especially during |
| 2. Teach them to save. Kids love to watch their | | | | the summer. If your kids are motivated, you may have |
| money grow. Start early with a piggy bank, then open | | | | to keep them from overdoing the amount of work |
| a savings account for each child. Compliment them for | | | | they take on. However, most kids need to be nudged |
| saving. Help them to set savings goals and when they | | | | into taking on a job. Babysitting and lawn work both |
| reach them, rewarded them with a special purchase | | | | have good hours, provide decent pay and develop |
| where you match their contribution. | | | | skills they will use later in life. |
| 3. If kids are careless with their gifts - do not replace | | | | Through these simple techniques you can teach your |
| them. Early on, my kids are taught to take care of their | | | | kids about what it takes to earn money and heighten |
| things. We place special emphasis on items of high | | | | their appreciation of it and the benefits it provides the |
| value such as computers and video games. If they | | | | family. |