I know that y’all are waiting for me to get to the part about kids and chores and commissions. It’s time to train yourself out of a job, huh mom?! Well, we’ll get there. But we must ask, why is there this perception that the young people of this generation are so inept with money? It starts at home. It starts with mom and dad.
I have found that, not surprisingly, people tend to avoid talking about money and the state of their personal finances. Spouses are not communicating with each other about money and parents are talking to their kids about money even less. How can we expect our kids to understand the value of their toys, their clothing and shoes, family car, etc. if we don’t discuss money? How can we expect children to be grateful to their parents and to God for what they have if they don’t understand the cost of their possessions? My husband has a quote on a sticky note of his computer monitor at work that reads, “A heart full of gratitude leaves no room for discontentment.” I love that. Gratitude comes before contentment. Mom, teaching our children about money is character-building. Don’t neglect it. Weave it into your conversations. Weave it into your grocery shopping, your mail-opening, your family game night, your math lessons, your gas stops, your clothes shopping. I mean, really! This list is endless!
Here are some practical tips for raising money-smart kids:
- Read the bible in front of them. Read to them. Ask questions. Teach your children to read the bible. That way they can find out for themselves what God has to say about money. I just found this website that references money matters as discussed in the bible. It is called biblemoneymatters.com. Another good way to get started reading the bible with your children is to read a proverb a day. There are 31 proverbs so simply find the proverb that corresponds with the date.
- Explain to your children what happens when mommy and daddy don’t work. What happens to the heat and AC? What happens to the food supply? What happens to the house? These are real life things that kids need to be taught.
- Teach your children to participate in household chores. (discuss personal vs. household chores)
- Give them opportunities to EARN money. Commissions; not allowances ahem entitlements.
- Encourage your kids to be creative and start a business.
- Give your younger kids a give, save, spend piggy bank. Great tool. Kids are usually ready for a divided piggy bank around six years old.
- Encourage older kids to operate within a budget. Maybe that means you deposit into their account the money that you would usually spend on their clothes and activities. Have them manage it with your oversight. When they start working, they can incorporate giving, saving, transportation, and discretionary spending into this budget. When they go to college, they will be experienced and ready to add in housing, utilities, food.
- You will be surprised by how generous your kids are! I have personally found that talking to my kids about money has led them to be both great savers and givers. They are very cautious and discerning spenders. I must remind them that they have spending money for purchases. I do recommend that they wait overnight before making a purchase.
In the United States alone, there is more than $1.7 TRILLION dollars in outstanding student loan debt.
65% of students graduate with debt.
The average amount of debt that students graduate with is $35,000!
(daveramsey.com/student-loan-crisis)
Practical Tips for college and older children:
- Include older children in the monthly budget meeting.
- Read Smart Money Smart Kids by Rachel Cruze
- Read Debt Free Degree by Anthony O’Neal
- If you are married, you and your spouse need to sit down and talk about what you can afford to spend on college. Then discuss the cost of the schools that your child is interested in with your child.
- Help your child choose a school! Don’t leave the decision up to your super wise 17 or 18-year-old child. Discuss the cost of tuition, living, transportation, food, etc. Choose a practical, in-state school.
- Choose a marketable degree. College is not just for funzies. It costs some serious money and kids need to understand the gravity of that. Their priority should be in the classroom-not on the beach.
- If your children insist on a school outside of your budget, make them pay the difference. Offer to pay for 4 years of in state tuition and let them come up with the remainder. Maybe their priorities will change, or they will really learn to work hard and appreciate mom and dad’s money.
- Make your children apply for scholarships. Rachel Cruze tells an awesome story about a single mom that couldn’t afford to send her daughter to a 4-year school. She made her daughter apply for two scholarships a day. The daughter had average grades but was able pay for 3 years of college from the scholarships she was awarded. The hard work is worth the FREE money! Free money, people.
- Have your children work part time while in school and work over their vacations. It’s good for them. They won’t break. They’ll learn to be good stewards of their time.
- Avoid student loans at all costs. Parents, DO NOT cosign loans, take equity out of your home, or borrow from retirement to pay for college. Sally’s college degree is not worth risking your house and financial security. Find another way.
- One last tip for parents of younger children… Open and start contributing to a 529 plan. In addition to getting you prepared for college, it will give grandparents and other family members an opportunity to give a practical gift.
What should be paid vs unpaid chores?
I expect my children to make their beds, tidy up after themselves, and clear their places at the table after a meal. Sometimes I ask for help setting the table too. I give commissions when my children do an extra task with a positive attitude or volunteer to help me with household chores. Miscellaneous chores are good for commissions too. Dusting, cleaning baseboards, sweeping the porch, and washing windows are great commission chores.
I will give you a few examples:
- Jacque gets up early, makes her daddy lunch, and empties the dishwasher.
- Charlotte offers to help me make my bed or help with the laundry.
- Lizzy helps assist Mommy or Sister with chores.
We don’t have a household chore rotation. I think we might get into that in the next two years or so. For now, I prompt the girls when there is a chore that needs to be done that is age appropriate. My 6 year-old is great at taking out the trash and setting the table. My 8 year-old is perfectly competent at emptying the dishwasher and making a simple meal. My 3 year-old can help set the table and put shoes away and is learning to clean up after herself. I still do the mopping, vacuuming, and bathrooms. However, if one of the kids is careless, I expect them to clean up after themselves. Even if that means mopping or vacuuming. Also, if I ask for help, I expect my helper to cheerfully assist me. I would consider these unpaid chores. It’s simply your contribution to the family.
If you want to assign above and beyond household chores, I would recommend using a magnetic white board with magnet clips. You can clip money and an index card on the board showing the chore. Once the task is done, Mom checks the work and the child can collect payment. It makes it upfront and simple. The child can see that work pays off.
I also have some momma budgeting tips for you!
- Learn how to operate with cash. Real money.
- Track your spending so that you can create a budget.
- It usually takes 3 months to get it working properly.
- Stick to the plan. Reference the budget that you created. It’s not a trophy or wall-hanging. It’s a tool.
- Make coffee at home.
- Cut back the eating out.
- Shop at the unglamorous grocery stores.
- Buy in bulk and freeze items.
- Set aside a little extra for when your favorite item goes on sale and stock up!
- To make cooking at home a little more enjoyable and save money eating out, opt to make your favorite meal at home instead of going to a restaurant. It might mean you buy more expensive ingredients than usual, but it still doesn’t compare to the cost of going to a restaurant.
Total Money Makeover by Dave Ramsey
Smart Money Smart Kids by Rachel Cruze
Debt Free Degree by Anthony O’Neal
https://www.daveramsey.com/fpu
https://www.everydollar.com/
https://www.everydollar.com/blog/budget-percentages
https://www.giftofcollege.com/
https://www.biblemoneymatters.com/
Growth Group at Tarah's
https://www.financialpeace.
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