As a follow up to our article, Talking to Your Kids about Money by Andrew Bolthouse, we asked several families in our church if they would share some of the ways they have intentionally approached this topic with their kids.
Dustin and Tanya Ganfield
When the kids were younger, we’d help them with saving for a big purchase, so they could tangibly see the cost of money. It may take X amount of chores, over X amount of time, to accumulate what they might otherwise have spent without thought upon receiving a birthday gift of cold hard cash. We would also help them decide what goes where from monies they earned by having them give to God first, then decide how much they’d save, and guide them toward choosing an appropriate amount to spend as a reward.
This kind of guidance helps them see the value (time and/or effort) of what their money represents, and sets up good habits later in life.
Chris and Paula Ravn
When we have been given a small gift of money to be used as a family, we will talk through ideas on how to use the money and the pros/cons of each choice. For example, let’s say it’s $20 to be some kind of a treat for the family. Some of the ideas we may suggest are: 1) Go to Burger King and use a coupon for a family deal 2) Go to an ice cream shop 3) Go to the grocery store for ice cream Sundae fixings or root beer floats. Then we’ll discuss each option and ask for feedback or any new ideas. We talk about how the ice cream shop is only a one time treat, but we could get stuff from the grocery store to make it last for more than one time. We talk about how if we want soda with our Burger King meal, then it’s cheaper to get a 2 liter bottle of soda then to purchase fountain drinks. Sometimes a child who really wants burgers, fries AND ice cream will suggest we make the burgers and fries at home with food already in the freezer and get the ice cream from the grocery store for Sundaes or floats. After discussion of the options, we have a vote. Usually we can easily come to an agreement together and the kids like having a choice. So far no one has suggested we split the money up and everyone does their own thing with their share, but I suppose that could be another idea. I think talking about these things, and the real cost of items, helps kids to understand why we don’t go out to eat all the time, but it’s also ok to have a treat once in awhile if you have the money to pay for it.
Scott and Betty Miles
We have put the vast majority of their money into 529 plans, which the kids will occasionally contribute to voluntarily. Blake has a high interest savings account as well because we didn’t want the volatility of stocks and he’s a saver. We have multiple discussions that money is not bad, but the love of money is.
We have a chore system where after the completion of each chore, they get a coin. The coin goes into a clear plastic bank, all lined up next to each other, where they can see their progress. We hope this helps motivate the other kids as they see their sibling’s jar increase, while theirs does not. At the end of the week, each chore that was consistently done each day gets a bonus. The system is still a work in progress 🙂 Examples of the chore list:
1) Do piano lessons
2) Put lunch box away and backpack when they get home
3) Awana verse
4) Clear the dinner table and remind everyone else
5) One chore
Mike and TD Tully
From a very young age, Mike and I began teaching our kids to give, save and carefully use their money. We did not go shopping to spend because they had spending money. Shopping wasn’t a family activity.
By the time the kids were in school, we (I) gave them spiral notebooks to begin keeping track of moneys they had earned and received as gifts. Their job was to write down total money and then allocate it into 3 categories: 15% to God, 50% to savings, 35% to their own wallet or piggy bank. Most of the time they gave to our church. I am sure there were other ways too . This continued til high school. ( One of our kids was much more disciplined than the other). The kids always saw us be generous with our money, possessions, our home. They saw how gracious God was to us over the years. He continues to be kind to us today.
Luke and Danielle Iseminger
We have discussed extensively how we want to instill lessons in personal finance in our kids. At the present time we are using chickens as the catalyst. We grew up some laying hens this past year and it has been our kids responsibility to collect the eggs daily. They help with the other chores of feeding and watering as they are able, and as they grow older they will take on more of the responsibilities. Whatever we as a household don’t use for eggs in a week we sell, with the money being split between paying for feed and paying the kids. This way our children can see their customers are people other than just their parents. We are currently using the 10-10-80 rule for any money they receive, so 10% goes to giving to the church, 10% goes to savings, and 80% is available for spending. After they have $100, we will open a savings account for them.
Tyson and Megan Troyer
How we have helped our kids with money making endeavors:
1. We have helped the child prepare a photograph and post an item on Facebook marketplace. The money made can go towards the next purchase. For example, we helped Kellen sell his electric dirt bike and then the money from the sale went towards his new bike.
2. My dad was a banker in Logan, KS. Our kids all have savings accounts there. My father took the kids to the bank, gave a them a tour, and talked to them about the importance of saving money. However, it kind of back fired on him because now the kids say “Grandpa takes their money.”
3. Kellen has an account at Main Street Exchange and the kids are going to help me prepare garage sale items. They will receive the money from the sale of their items as long as they help out with the sale preparation.