Talking to the Kids…

 

This month, a lot of kids are actually going to school, versus the virtual schooling that so many have gone through in the last two years.   Something that I’ve always thought schools missed, though, was teaching kids financial literacy. 

In other words, how to handle and manage money. 

The simple fact is, parents are the final line of defense against our kids’ not knowing how to manage and make money in the world. 

Don’t believe me?  Go open a new bank account with your teenager, and then watch your mailbox.  LOADS of junk mail for “free” credit cards and loans – all sent directly to your child.  

And let me tell you, “free money” sounds awfully good to most people. 

This month, I’m planning on teaching a few points in my emails about how you can help your kid learn more about money and manage it more effectively. 

Let me go ahead and kick the hornet’s nest right now:  If you give your kids an allowance each week, stop it.  Stop it today. 

Why?  Simple – you’re teaching them to take a handout. 

Pay them to do chores in the house. 

Mow the grass.  Weed eat.  Wash dishes, clean the kitchen or the entire house.  Wash the cars.  Cook dinner. 

DON’T pay them for taking care of “their” things.  Junior should clean his room because it’s his room.  He should clean up after himself because he made the mess. 

For those of you with older kids – college aged or so – one of the smartest things I’ve ever seen in the world of parenting was one of the hardest and was recently shared with me from an old friend on the East Coast. 

This man’s grandfather began charging weekly rent to his son when he turned 18.  At the time (the late fifties), $25 a week for room and board wasn’t a great deal, either, but the young man was working full time and paid it.  When the son finally moved out the next year, his father presented him with the “rent” money as a small gift to get his new life started. 

To me, that was one of the greatest parenting acts I’ve ever heard of. 

…But to get back to the core of my message today?  Kill the allowance and teach your kids the value of hard work and responsibility.  Let them learn how to earn, and you can even turn this into a fun experience by sitting down the whole family, listing out all the tasks to be done, and having all the siblings agree on their specific responsibilities.  Arrive at what those tasks are worth to them, and don’t forget to pay them.  (Chances are, you’ll be reminded if you miss a payment.) 

It can be a very smart way to help ease the workload on you and your spouse and teach even young kids the value of work. 

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