Do your children, big and small, understand money?  Do you?!?  Learning to organize, understand and manage money is a necessary part of growing up, but there is no guarantee your children will learn about budgeting, bill paying, net income or the value of a dollar in school.  Like all life skills, the sooner we start teaching about money skills, the better our children will learn the lessons.

What Lessons Do We Want To Teach Our Children About Money?

1. Very young children:
   1. Set up a savings account in their name
   2. Understanding that we exchange money for goods and services
   3. What money looks like
2. Young school age children:
   1. Value of a dollar – what goes into earning a dollar, and what it can buy
   2. Money is finite, and Money spent on one thing can’t be spent on something else
3. School age children:
   1. A healthy understanding of your financial views
   2. Value of work
   3. Appreciation for money spent
   4. Budgeting
   5. How advertising works
   6. Charitable Giving and Savings
4. High School age children (list is endless, but includes):
   1. Household budgets and salaries
   2. Costs of higher education
   3. Benefits and pitfalls of credit, and Establishing a good credit score
   4. Investments, interest and the stock market

How Do We Teach Money Lessons to Our Children?

1. Let them handle money.  Give them money of their own, and let them earn more money by their own hand.  Our boys earn a set allowance (the dollar equivalent of their age every 2 weeks) for regular chores, and can earn more for extra projects.  I know there are lots of differing views on children’s allowances or salaries, I am just presenting ours.
2. Lead by example.  Start with a trip to the grocery store.  Have the kids review the weekly store flyers with you, and make your weekly menu or shopping list.  Show your children how you compare prices and quality on your favorite products.  Discuss brands and advertising.  Use coupons and sales to save money.
3. Limit today’s lessons to those you think your kids are ready to learn.  Use small words and real world examples.  My 7-year-old won’t grasp tax rates and returns on investment, but he understands the exchange of money for goods and services.  He also knows that if he wants that new game, he needs to save his allowance for a month or 2, do extra chores or ask for it for his birthday.
4. But, Don’t dumb it down.  My 14-year-old sat with my husband the last time he paid bills, to better understand our family finances.  Involve your kids in financial conversations.  They don’t need to know the details of your finances, but they can certainly listen as you discuss major projects, budgets, opportunity costs, comparison shopping, etc.
5. Teach gratitude and giving.  My family is blessed with all that we need, and often everything that we want.  In our family, we encourage charitable giving of money and belongings from a very early age.  The kids donate books and toys and clothes to charities, and help us with service projects for those less fortunate.  Helping your children recognize how blessed they are with what they already have can help to counteract the “wants” list, and curb spending.

Your children’s money education starts with you. For more information on these topics, check out these resources:

• Debt Proof Your Kids by Mary Hunt, http://www.debtproofliving.com/
• www.volunteerfamily.org
• www.youthgive.org
• www.charitynavigator.org

And because I always get asked, I have a list of age appropriate tasks that I distribute at my “An Organized Family” class.  Here it is….

Age Appropriate Tasks & Chores
Adapted from “My Happy Little Helper”, Parents Magazine 10/03

Ages 2-3

• Comb and brush hair
• Get clean diaper and wipes
• Wash and dry hands
• Lather and rinse body (3)
• Select clothes from choices
• Put on loose-fitting clothes
• Put on coat (no zipping)
• Brush teeth, with supervision
• Bring silverware to table
• Wipe up spills
• Pick up and put away toys
• Put dirty clothes in hamper
• Take own plastic dishes to sink

Ages 4-5

• Pour from plastic pitcher
• Put on shoes (tie laces 5-6)
• Straighten bed
• Empty wastebaskets
• Dust furniture
• Wipe kitchen table
• Feed pet
• Clear table
• Help unpack groceries
• Sort laundry by color
• Help put clean clothes away in drawers or on shelves
• Swiffer wet, anyone?

Ages 6-7

• Sweep into a dustpan
• Set table
• Help wash car
• Put groceries away
• Help shovel snow or rake leaves
• Remove dishes from dishwasher
• Sort silverware into drawer
• Run shower or bath (age 7)
• Water garden or houseplants

Ages 8-10

• Fold Laundry
• Strip and make bed
• Load and run dishwasher
• Put clean dishes away
• Help care for younger siblings
• Vacuum, sweep and mop
• Brush and floss teeth un-assisted
• Load washer and dryer
• Take out trash
• Weed the garden