There are so many things we want to teach our children. I want Emily and Anna to have a happy life, happy marriage, happy children. Most all of which is connected to money.The number one cause of Divorce is money. I have heard from counselors to comics that, in marriage, money is not a fight, it is THE fight. Even as a single adult if they can not manage their money it will not matter how much they have. If they can, no matter how little they have they will do great things.
Recently my husband and I have been taking a Financial class, called Financial Peace. It is a system which helps you “babystep” your way out of debt. It has helped us truly learn how to budget, and how to invest, when we are ready. (Things we probably should not have graduated High School without learning.But I digress…)
We realized our parents never taught us these things, mostly because they didn’t know how themselves, and we really want our girls to get this stuff. Dave Ramsey says it is important to start young with your children, helping them quickly learn the value of a dollar. At 3,4, and 5 years old Emily says that she wants something; I will tell her we do not have the money; she says “well go to the bank”. That is simple enough for her,right? So we have created her a “bank”, so she understands that if you don’t put in you don’t get out.
Of course this brings in so many opportunities to teach character, responsibility, the concept of money,etc. It definitely tests our character, will power, and resolve to control our money.It is easier to create a habit than to break one, and undisciplined financing is a hard habit to break.
Dave has developed a system that helps you help them. It uses his concepts that he teaches to adults. It is complete with a chore chart, which you give monetary value; envelopes for giving, saving, and spending; and alot of other cool tools. It even has a place to deduct.(i.e. little Johnny didn’t pick up his toys, and mommy had to do it. She gets paid for it. -$1) He says not to call the money an allowance, it is a commission. Commission is something they earned and work for, which can also help give them a sense of pride and self esteem. Allowance is something they feel they are entitled to.(Let me just say here, some things they do needs to be expected because they are a contributing member of the family;Find 2 or 3 things they can do above and beyond their expected duties to earn commissions.)
We strive to teach our children character, morals, good habits of giving and being responsible. I really feel that introducing these principles encompasses all of the traits we want to instill in our children. I encourage you to look through these materials, and check out his whole site while you are there you may find it useful. His book Financial Peace is easy and funny to read.
With all due respect, I think it’s possible to over-do the “we don’t have the money” line. It makes acquisition all about money, when it should be about considering need versus want and the consideration of others more than about cash. I have been debt-free since March and I have lived on a budget for so long now that I am shocked when I read “thrift” sites. All the tips about saying money tend to be about buying stuff no one needs at a discount. I find I save more by just not buying crap.
I’ll have to check out the book, we’re really struggling with this in our family. It’s really hard to teach the kids good money sense, when you barely have control of your own issues as adults!
Kate.
I agree with you, Kudos to you for getting out of debt. I love the fact that Dave Ramsey lives what he teaches, such as he will not accept credit cards to purchase his materials.
As far as the “not having the money” line I totally agree, I also use the, “save YOUR money and you can have it” line.
And to comment to the “thrift”sites. A friend of Mine, Jessica, (who is totally debt free thanks to financial peace,BTW) says “You don’t save money by spending money” I totally agree.
I’m proud of you, baby, for getting on a budget and connecting with your cash. Dave’s plan makes a lot of sense and because of you, the little tykes will grow up right and not get deep-sixed by debt. Way to go, dollface!
We are working the plan! We’ve had our credit cards frozen (literally, in our freezer) since last Christmas. We are paying down the debt! It’s not easy, but it does feel good to be headed in the right direction. Good post!