Experts say the best time for information to stick in someone’s mind, is when they need or will use it most.
Let’s use Financial Literacy as an example…
- We use money everyday… we use it to buy needs and wants.
- We use money to pay for our shelter… utilities and food.
- We use it to buy a car, pay for gas or public transportation.
- We use it for entertainment, pleasure and fun.
Pretty much we use money for everything we do…
- But… we are not taught money in school when we need it and use it.
- We are not taught about it at home when we ask for it relentlessly.
- Our government is clueless with it; obviously they can’t balance a budget.
- Our states are clueless with it and our educational system gets less and less of it every year! What are we teaching our children??
Usually more money does not solve the problem, the problem is staying within ones budget.
I don’t like budgets so lets call it a plan. The reality is, you have to know how much is coming in, how much is going out, and what is left over.
One more critical point…
Experts also say that self-control and finances go hand and hand.
Children with little self-control have difficulty-managing money as adults. (Read the Marshmallow Experiment)
- Of course if a child is given money freely to buy what they want then they will buy everything.
- If a child has no boundaries on spending what they have, then they will spend, spend, and spend.
- If a child gets everything they ask for then they will continue to ask away.
- Thus creating adults who act the same way.
Research has also proven that allowing your kids to earn and manage money early is key to their financial future and self-control.
- When you have to work for something you appreciate it more.
- You will always spend your money better than you will someone else’s.
- Kids do not have access to credit, payday loans or advances. So when the cash is gone it’s gone.
The best way for children to understand and manage money is by learning how it’s earned.
Money can be earned through an allowance, selling, creating, or providing a service to name a few.
Lets start off with allowance and how it helps with self-control.
Keep it Simple – Start with just a couple things your child is not doing. If they are not making their bed, brushing their teeth and getting ready on time in the morning, start with those three.
Assign an amount for each item and do that for a couple weeks. Once this becomes a habit and your child does it without you asking, you have changed a behavior, Yeah!
Then you can add a couple more items to the list of to-dos that your child is NOT doing. (Never reward your child for what they are already doing.)
This is about creating positive habits and creating self-efficient –independent kids.
- Rewards – Once your child has created successful habits and they are doing what is asked, explain how proud you are of them. Recognition is important to kids. Click here for more details of rewards and payments and the smarter way to pay an allowance.
- Teach a work ethic – make sure your child understands that they must give you 100%. Show your child what you expect from them and nothing less. A strong work ethic is learned and taught by parents. This will help your child have an advantage in real life, because few people have it.
- If you show your child how to make their bed, and they come in and have just thrown the covers over and said done. You must say, hmmm… something is wrong it does not look like how I showed you. Please do it how I showed you and leave the room.
- Be Consistent – You must be consistent and follow through with what you say. If it’s payday, chores or punishments… follow through or it will be 100% your fault. Kids will try and get away with everything and it’s your job to follow through and not be a pushover.
You’re the parent; they’re the child… plain and simple! Kids thrive when you create boundaries and guidelines for them. Check out our full line of award-winning products designed to teach kids what they need to know about money!