Kids Are Our Future

Having money is crucial to obtain some things we need in life, while money is not everything. I like what Suze Orman says “People first, then money, then things.” For kids, learning how to think about money and manage it wisely is an important life skill. As parents, we hope that our children will grow into financially responsible adults and have a secured fanatical future as well.

Financial experts agree that understanding cash, credit, and consumerism is possible, and important, for building a sense of financial responsibility in children. If parents don’t teach money management skills at a young age, usually when the child starts getting an allowance or has a part-time job, money problems may occur, and even lead to the consequences for his or her life-time. Parents should take the time to teach children about money regardless of income and should start when children are young.

In the next several posts we would like to focus on kids and money, talk and discuss some helpful guidelines and suggestions for parents to teach kids about money. We will provide general background and outlines by age group and stage of development children’s understanding and use of money as well as conflicts about money. We also identify activities parents can use to teach children about money, covering earning money, saving money, spending money, and borrowing money. Try to answer some questions, such as “What kind of things should I teach my kids on money?” “How can I teach my kids about money?”

In order to teach children about money, we as parents have to examine our own attitudes and values toward money first, and then think about the things we want our children to understand. Let’s take a look at some quotes on money, which are popular sayings that have become acceptable as a general truth through long use. However, like any saying, each of the following adages could only fit certain situations, may not cover all aspects in our life. Use them as references.

• “Money isn’t everything. It’s just most everything.” Money is very important to meet a lot of needs in our daily life. Such as food, housing, college.
• “Money is power, & you ought to be reasonably ambitious to have it.” When we have money we can do a lot of things, help schools, donate to those people really need it. Such as people who are suffering from natural disasters.
• “Money’s only important when you don’t have any.” If we have a lot of money, more than we need, money becomes not so important to us.
• “The real measure of your wealth is how much you’d be worth if you lost all your money.” Money is just the outcome of hardworking using our ability.
• “Money can’t buy happiness.” Money can not solve some person’s problems. For example, some well-paid movie stars who are taking drugs, having trouble with the law.
• “Self-worth isn’t measured in dollars and cents.” It doesn’t mean that a rich person who has the money is valued in that way. Some people got rich by doing bad things, such as trading drugs; certainly they are not regarded as valuable people.
• “Money, like manure, only does well when you spread it around and encourage small things to grow.” Money is just a tool to help people live better. Using money to pay for an education, to start a business, or to donate to charity are certainly good reasons for having money.
• “A fool and his money are soon parted.” Wise money management needs knowledge.
• “Those who are of the opinion that Money will do everything, may very well be suspected to do everything for Money.” If a person put money as his or her fist priority, it will be very dangerous.
• “Your money or your life.” We know what to do when a burglar makes this demand of us. Life is much more important than money.
• “Money may be the husk of many things but not the kernel. It brings you food, but not appetite; medicine, but not health; acquaintance, but not friends; servants, but not loyalty; days of joy, but not peace or happiness.” Money is not essence for us.
• “If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability. “Once again knowledge and ability is much more import than money, because, if we do not have knowledge, do not have the ability to grow money, even we have money, money will gone soon.
• “Never spend your money before you have it. “ A very good advice for avoiding debt.
• “It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy. “ This is an excellent advice for us to have a healthy and happy life.

Money plays an important role in our everyday life. As parents, we should educate and help kids to understand money values and build good money habits. A solid money education is one of the best tools we can give our kids. It will help them the rest of their lives. The following are some suggestions to help parents to educate kids on money.

1. Teach kids about money as soon as they can count
   Long before most kids can add or subtract, they become aware of the concept of money. A 2-year-old knows that in order to buy ice cream he or she needs money in a supermarket. It’s important to work on the kids’ financial awareness as early as possible, because once they become teenagers, they are less likely to listen to and consider parents’ advice.
2. Teach kids how money works
   Kids need to know how money works, the basic ins and outs of a family economy. Tell kids that money comes from parents’ hard working. We use money to pay bills. As they get older, we can teach them about credit cards, bank interest, and so on.
3. Help kids learn the differences between needs and wants
   This will prepare them for making good spending decisions. It is important to meet the kids’ needs, while to guide them to set their needs apart from their wants.
4. Use an allowance as a teaching tool
   Giving kids an allowance is one good way to help them understand the value of money. Guide them on money saving, spending using the allowance.
5. Teach teenagers on checking accounts, credit cards, and debt
   Teenagers and college-age kids have bigger responsibilities, prepare for their independence.
6. Teach teenagers about investing
   High school kids can and should be taught about the risk of market.
7. Establish a regular schedule for family discussions about finances
   With teenagers, it is useful to discuss what’s happening with the national and local economies, and then discuss how to economize at home, and alternatives to spending money. Parents should disclose information and provide guidance that is consistent with our values and beliefs. It is often better at providing information about the facts of life than just talking about what matters more.
8. Get support from family members and friends
   It easier and efficient to teach kids values when get the support and guidance from family and friends.
9. Let kids learn right from wrong
   Parents do not feel disappointed and frustrated, if the kid sometimes behaves in a way that differs from our standards, as long as he or she does not do it regularly. Although bad behavior needs to be recognized and dealt with, kids will learn from their failed experience.