Parenting Matters, Cynthia Martin

Money gets a lot of people in trouble. It is something we all want and need but something that also creates a lot of problems for people of all ages. One of the ways to help solve this problem is to begin early to teach your child about money. Here are a few ways to approach this.

 

• Talk with him as he grows about your values about money. Talk about how to save it, how to make it grow, and most importantly, how to spend it wisely.

 

• Begin lessons in money with children of any age.

 

• Help him learn the differences between needs, wants and wishes. This helps him make good spending decisions.

 

• Talk about setting goals about money. He can’t reach a goal if he hasn’t set one. Nearly everything he asks you to buy can become the object of his goal-setting session. Such goal-setting helps him learn to become responsible for himself.

 

• Introduce him to the value of saving versus spending. Explain the idea of earning interest income on savings. Think about paying interest to him on money he saves. Some parents even offer to match what children save on their own.

 

• When you give him an allowance, give him money in denominations that encourage saving. If the amount is $5, give him five $1 bills and encourage him to at least set aside $1 in savings.

 

• Teach him about credit cards and what they really cost by showing him how they work. Let him see how you use them and rules you have for yourself to keep from getting into problems with the easy use of credit cards.

 

• Talk about credit scores. If you don’t know how they work, find out so you can discuss them together. It is an interesting topic.

 

• You even can talk about buying a house or buying a car and what it really costs when you make your payments.

 

• Talk about the cost of maintaining a car or even maintaining a house. Don’t forget to mention taxes. When you get the tax bill, show him what it is and talk about it.

 

Lessons about money are too frequently neglected; that is why we have some of our current economic problems. The fact that this frequently isn’t taught in schools means the primary place it is learned is from parents. Be a good teacher for your child but also a good model.

 

Cynthia Martin is the founder of the First Teacher program and now director of Parenting Matters Foundation. The foundation publishes newsletters for parents, caregivers and grandparents. Reach Martin at pmf@olypen.com or at 681-2250.