Monday, June 1, 2015

Our Children, Our Money!

In today's tough economic world, it's more important than ever to help our children understand the value of the dollars that we earn to support them. In so many homes today, parents often take their hard earned income and turn it over to their children without providing them with the understanding of the power of currency.  This can lead to some disappointing realities in the future when our children finally grow up and begin to earn their own money.

Let's look at some of the things that we as parents may all be guilty of at one time or another. How many of us have been in this situation:   Your child just has to have that latest, hottest item and we go out and get it for them, without even thinking twice about it. When we do that, we're setting our children up for failure.   When we don't take the time to stop and explain to our child what it takes to earn $150.00, our child will lack the knowledge, of the sacrifice that we have made with our cash.

Some of the ways that we can help to give them understanding, is to break down to them just how much people make in their daily employment. Our children need to know if you are only making $15.00 an hour that it's going to take you one days wage plus two work hours in the next day just to buy that one pair of shoes or outfit that they want. However sometime that doesn't even register with them. Here is a quick personal example, I took my sons with me to do a painting job that I had landed, when we were done I paid them both 300.00 dollar each. I asked one of my sons, who happens to be a shoe-aholic, what was he going to do with his money? I already knew the answer but I just wanted to see if he comprehended any of the lesson that I had been teaching. Short answer, NO. He told me that he was going to buy himself some gym shoes that cost $150.00.  I then asked him if  he was actually willing to take half of the money that he had earned and spend it on an item that he probably will lose interest in soon.  He replied "yes."  He then took one of the previous lessons that I had taught him an used it to make his case. That lesson was "if you make your money you can spend it the way you want," however he left off the part when I said "as long as it is wisely."  I get a chuckle now when my son talks to me about his daughter and her lack of understanding the value of time, effort and money.

I guess some lessons are better learned when its your own money at stake.