Gulf Coast Family

by Mary Beth White

The fact that money is a finite resource is a difficult concept for children to grasp. Regardless of your financial means, you should still teach children basic money management. Obviously, this is a lot easier to teach it if you emulate it yourself. Here are some simple techniques that you can use to teach children to manage money.

Tithe, Save, Spend – Based on your own convictions, teach your children the proper priority (and percentages) for the use of their money. Since many banks offer children’s savings accounts, you can easily have them set up their own bank account.

Wish List – Many children (as well as adults) tend to impulse buy. When we go to the store and my children see an acceptable item that they want to purchase, I allow them to put it on their “Wish List.” Ironically, most of the toys or other items that are so important to a child while in the store are completely forgotten about by the time we get home. The ones that aren’t can go on the “Wish List.” This list can be used as a guide for presents for birthdays and holidays, or as an approved purchase list when your child has the funds.

Encourage Gift Cards or Money as Presents – When children receive gift cards, they can be given the opportunity to purchase something on their “Wish List.” With cash, they can also be given the opportunity to put the money in their bank or add it to gift card money for a large dollar item. There is a certain amount of excitement when children are able to purchase a long-desired toy.

Allow Children to Sell Their “Stuff” to Purchase Things They Want – Allowing children to sell their old “stuff” to purchase new items not only helps eliminate clutter, but helps children to realize the cost and diminishing value of items.

Encourage Children to Sell Their “Stuff” for the Benefit of Others – Several years ago, some of the boys from our church got together and had a joint yard sale that raised a significant amount of money to give to missionaries. The kids not only had a great time, but also turned their attention from their own wants to the needs of others.

Pack a Lunch – Consider only allowing your child(ren) to purchase a lunch one day a week (for us it’s normally pizza day). My kids love Peanut Butter and Jelly, and fortunately, a PBJ sandwich can be made in advance and frozen (for added fun, have your children cut them in shapes). Lunches can be quickly assembled in the morning, and children are more likely to eat their lunch when they have something they like. For older children, make them aware of the cost difference between purchasing a lunch at school and packing a lunch and let them do the math!

Teaching your children basic money management when they are little will arm them with a lifetime of practical skills.

Mary Beth White is a Certified Public Accountant in Pinellas County, an accounting professor, wife, and the mother of two adorable children.