Teaching Kids to be Smart with Money

Teaching my kids to be smart with money is a value that I have been working on since they were born.  This is important for me, because, through out my life, I have had a lot and I have also lived with little.  I have been financial stable and I have also lived day by day.  You see, in my home country, I lived well and my family was financially comfortable, but when I moved to the USA, at the beginning it was tight and we lived with bare minimum, until we got ourselves off the ground.  I learned from an early age, that money doesn’t define me or the ability to be happy.

One day on a play date my heart was full and felt accomplished, after I heard my oldest daughter say to her friend, who desperately wanted to by this one toy…. "my mom taught me to be happy with what I get, so I don’t have to be upset now if I don’t get a toy.”  My mouth dropped and I could not believe my ears!!!  This child has actually been learning and taking in all the lessons I have been teaching her all these years.

Here are some of the steps I have followed:

• When I got to the store, I let them know ahead of time that we are only buying what is on the list.
• At the grocery store, I may let them pick some gold fish or some snack they like (that I approve of course....I am not big into junk food).  This way they feel like every so often they can get a treat.
• When we go to a toy store I constantly remind them of the purpose as to why we are at the store (like buying a birthday gift, etc…) and that if they like something they can put it on a list for things to choose for Christmas or their own birthday.
• On random occasions we do buy them a toy or something they really like, but I try to use it as a reward or positive re-enforcement.
• I help them with their money that they receive as gifts, by splitting it in three.  Some for God (tithe & offerings) or you can encourage your kids to give some to a charity.  We save other and then they can have some spending money.
• With their own little spending money, I let them know that they can save it for a nicer toy or activity instead of waisting it on trinkets that end up in the garbage.  However, if they do want the trinket, I let them get it, specially since it doesn't happen very often.  (I use my power of persuasion, ha, ha).
• I share with them of how this is a big world and there are people with needs and for us to use money wisely so we can help them, and it feels rewarding.
• I tell them that I don’t always buy what I want. Sometimes I do sometimes, I don’t.  Of course this is something we have to model.
• Oh, yes, and when they were little and we started doing this, I did get the tantrums at the store, but its ok, I am over being embarrassed in public when my kids tried to manipulate me.  So, that didn't bothered me and they learned that I didn't work.

Feel free to share what works for you?  Because, I believe this is an area that we give our kids a head start to a successful life in the real world.  The real world does not give us everything we want, we have to work for it.