Every day I meet with clients whom have asked “How do I teach my children to manage
Their money?” It all begins with the GOLDEN RULE. The GOLDEN RULE is to pay ourselves first.
How we teach our kids about the GOLDEN RULE is of course to lead by example. I am a firm believer in tracking every penny that goes out of the pocket. Write down every penny you spend for a solid three months. That includes money going to child A, B or C. That way we are aware of where exactly our money is going. You will be shocked to see how much money you are handing over to your children for hot dog or pizza days at school. This can all be very costly on our budgets. This is why children have the magical thinking that money grows on trees.
Our job as parents is to teach our children the realities of life. Children usually have a sense of what money can do for them at about 5 or 6 years of age. A 5 year old would get $5 per week and $1 would go directly into the piggy bank. A child would get a $1 per year of their age for a weekly allowance. Therefore a 6 year old would get $6 per week and $2 would go into the piggy bank.
The GOLDEN RULE is to always pay yourself first. This money is a great investment in their future for college or university. Their wants and needs cost more as they grow older. Teenagers want to go to the movies, go bowling or go shopping which all adds up. The question to ask is do you have enough money in your budget to do all of those things? Or should you wait and save? Teenagers soon find they want more money and the only way to get more is to get a job.
These are very tough economic times and if you are having a difficult time maintaining your budget , please call 310-PLAN for a no cost, no obligation meeting.
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