Helping Your Children Value Money & Savings

Teaching Children Responsibility and the Value of Money

Parents often see their children as too young to comprehend the value of money and its wise conservation. What is lost to some is that children are born into the world learning. From infancy on, young people are a sponge for gathering information. Children not only learn things easier than adults, they retain much of it for their entire lives.

Whether you realise it or not, everything you do provides a learning experience for your children, and what you are teaching them might not be in their best interests. If you seem loose with money and struggle with debt, they will likely develop the same tendencies and have little regard, but if they see you saving money, it becomes more important in their eyes.

Hobbies and Responsibilities for Children

Children need some rest and relaxation just like adults, but that doesn’t mean that they should be allowed to do what they want all the time. Teaching your kids about savings begins with giving them responsibilities. Kids are much more appreciative of time to do fun things when they have spent some of their free time doing chores or hobbies.

Hobbies that produce some educational benefits and don’t cost a great deal of money are the ones you should encourage. Some hobbies to consider are:

• Vegetable Gardening – This is work on the part of the paren’t, especially in the beginning, but it produces something of value and teaches children about savings on grocery expenses. A child learns responsibility because a garden does not produce without maintenance, and it gives them a chance to feel accomplishment when they harvest the rewards.
• Astronomy – An investment is required for a telescope, and it should be determined first if it is likely the kids will commit to the hobby. Not only does it require some time to star gaze, but young people gain information that can help them in school.
• Music – To be a musician requires an aptitude for the instrument of choice. Be certain that a child understands that practise is important and to make the right selection at the beginning.

Children and the Pet Dilemma

There always comes a time when a child wants a cat, dog or other type of pet. Under the right conditions, this teaches saving and responsibility. Too many parents operate under the premise that a child will not take proper care of a pet and proceed to do it themselves. This teaches the child nothing and only adds to a paren’t’s responsibilities.

It is much better for the child to understand that the pet depends on him or her for everything, and that food and pet upkeep costs money. It is an excellent time to give a child paying chores to earn the money to care for the pet.

Until a child is old enough to properly care for a pet, parents should understand that any animals that come into the home are family pets and the adults are required to nurture and care for them. A child should be nine or ten before getting a personal pet so that he or she will understand what is required to be a pet owner.

Parents are responsible for training their offspring in matters of savings and responsibilities. The two go hand in hand, and in raising your children to understand the importance of these values, their lives will be more productive and successful as they grow into adulthood.

PSYCHOLOGY OF MONEY: How Does Money Affect Us?

The way you were raised probably affects your view of money. Learn how to analyze how money motivates you, and how to use money effectively.

The view you have of money may very well depend on your age. It’s not just whether or not you’re nearing retirement that affects your view, it’s the financial era in which you were raised.

People who grew up in the 1920’s and 30’s certainly strove to make things better for their own children. However, skip forward 60 or 70 years, and it’s hard for parents to make things better for their kids. They often try, instead, to make it easier, which may not be better. This will certainly affect their offspring’s’ view of money.

“The Greatest Generation”

Sacrifice was the way of life for those who were born during the 20’s and 30’s. These people lived through the biggest war in Western history. And in the United States, watched the farming economy as it blew away in the Dust Bowl. They manned the sweat shops in pre-union factories, working hard and living on pennies a day, determined to make life better for their own children. And they did. Their work ethic and self-sacrifice can teach you that rewards may not be instant, and may not be easy. They can also teach you that you can, indeed, do without.

Baby Boomers

The hard working people of the “Great Generation”, after toiling their way through historic periods of war and financial depression, finally were able to settle down and have families—which they did in keeping with their work ethic. The “Baby Boomer” generation hit the ground running. They had the luxury of self-introspection and the freedom to explore radical ideas. They also had, arguably, the best music of any generation. They also learned work ethic from their parents, combining it with a no-fear mentality concerning investments. While saving for the future, they also were not afraid to take control of their own financial choices. Of course, unlike their parents, they had a little money with which to experiment. They also elevated credit card usage to an art form.

The Generation X

While the children of the baby boomers are sometimes labeled as selfish, another way to look at it is that they learned to look out for Number 1. They saw the established financial mega-moguls (ex. Enron, Tyco, Fannie Mae) crumble out from under their parents, and realized that being able to take care of your own finances is vital. They also learned from their often workaholic parents that home and family need time too. The balance struck by Generation X, and the control they are willing to exert on their finances, are their legacy.

The Generation Y

These hyper-active, Attention Deficit Disorder plagued kids have, perhaps the most to offer in the fast-paced cyber world of today. They are, rather than overwhelmed by the constant bombardment of the world around them, engaged and stimulated to higher achievement. They are also, like their parents, a little too fond of plastic money.

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