196. Teaching Kids to Be Smart with Money

Parents are often hesitant to talk to their children about sex and money on a personal level. The lack of serious money talkleads to kids who don't know what their parents make and much worse, what things cost. This often gives our kids a skewed perspective of the reality of money and finances.

 

Show Highlights

 

It is important to be intentional in teaching your kids about money. Financial wisdom doesn’t come from a lesson, but from hundreds of experiences wisely processed. It is not just important to go through certain experiences, but to process them and learn from them.

 

Don't automatically bail your kids out of foolish decisions that they make when it comes to money. Praise God for foolish decisions! There's nothing better for a young person to go through than a foolish decision that they own. It will teach them better than most anything else.

 

There are 5 principles that you should teach your kids to help them to be smart and wise with money:

 

1.Working –When we talk about finances, the first thing to talk about is working. Emphasize the importance of earning through honest work. Establish a good work ethic in your children. Try not giving them an allowance. Instead, replace it with a commission system in your household to set them up with a mindset that when they put in the hard work, there is a reward to be earned.

 

2.Giving –Part of your child's hard-earned money should be allotted for giving. This goes to the Church collection, teaching them to give back to the Lord and be involved in the work of God.

 

3.Saving –Teach your children to be the best friend of their future selves by allotting money for their savings. Motivate them by setting a goal or item they are saving up for.

 

4.Spending –Guide your children in making wise decisions when spending their money and making their own purchases.

 

5.Debt –This is harder for children to understand, but is no less important in your child'sfinancially literacy. Start talking to them about debt when they are young to ease them into an awareness of what it is.Teach your kids to pay the Lord first, their future selves next, and live off of what is left. Strive to raise children who are wise, generous, and smart in the way they handle their money.

 

[bctt tweet="There's nothing better for a young person to go through than a foolish decision that they own." username="jaydholland"]

 

Resources Mentioned

Sponsor: Perfectly Imperfect, Oct 23-24

Sponsor affiliate: Hopegivers

The Christian Parenting Podcast Network on www.christianparenting.org

Book: Financial Peace Junior Kit by Dave Ramsey

Previous episode: Anthony Oneal: Debt Free Degree

 

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