Raising children to be financially responsible adults

red sea

Tue, Mar 28 2006, 11:29 am

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It's very hard when you are newly married. You don't have a good sense on what you should spend money on. B"H a lot of us get married young and we are inexperianced when it comes with handling money.

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I wish I had taken money management classes when I first got married. That, or if everyone had given the wedding money 1 year late.

Can we raise children who are financially savvy to start? If so, how?

shoshb

Tue, Mar 28 2006, 11:44 am

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Can we raise children who are financially savvy to start? If so, how?

Sure we can, and we should. A few ideas...please add
1. It's OK to tell your kid "I can't buy that because we can't afford it".
2. At age appropriate levels, children should be able to save up for their own "special treats"
3. When they receive money for birthdays, Chanuka etc, some goes to savings, some goes to tzedaka.
4. Let them look at the statements on their savings accounts/College plans etc
5. Let them see you pay for things with cash. When they only see a credit card, they don't understand how it works like money.
6. Try to instill in them that it's the little things that add up. A can of soda here, a toy there......
7. Let them see the rewards of your good habits. When there is a big expense, and they see you are nervous, you can say "B"H we have savings to pay for this".
8. Let them work for their own money. I babysat when I was 12, my brother had a paper route, our neighbor shovelled snow etc.

Certainly not an exhaustive list, but things I've tried. My kids are still little, but it seems to be working. I'd love to hear more ideas.

amother

Tue, Mar 28 2006, 2:03 pm

When I was growing up, my parents really watched their money. I grew up resentful about many things. I knew there was money because my father had a good job. But I did not get what my friends were getting because my parents were investing the money. B"H their investments paid off, (now he has money.) but when my dad gives anything to my kids or to me, I always think to myself that I wish he would've saved less and at least let me have a normal childhood.

Problem is. I was raised to watch money. I teach my kids the same. But now it is my parents who criticize how I spend(or don't) money. My mom just commented why my 6 yr old doesn't have a shabbos coat. She forgets that I didn't get a shabbos coat till I was 12. I wore shabby, cheap clothing and she wants my kids to wear the most expensive. I tell her" YOU are the one who taught me how to manage money."