Welcome if you are visiting us for the first time here on Wednesdays!! If you want to start at the beginning of this series click on Seeking Financial Freedom on the right hand side of the screen..you will have to scroll down a bit to find it....
Hello again and Happy Wednesday!! It's time for gaining some more knowledge on how to be better stewards of the money the Lord has given us!!!
Topic for this week:Children-The ABC's of Money
OHHHH Boy! We are talking about a great topic this week...Teaching our kids the value of a dollar.....listen to what the book wrote (p.118)
Answer this question: When you left home, how well prepared were you to make financial decisions? Parents and teachers spend 18 to 22 years preparing youth for occupations but generally less than a few hours teaching children the value and use of the money they will earn during their careers.
To teach biblical principles of handling money, parents should use three methods: verbal communication, modeling, and practical experience.
Verbal communication: (p118) We are instructed in Deuteronomy 6:6-7 to teach and instruct our children in the ways of the Lord. They need more than verbal instruction.....they need a good example!
Modeling:(p.119) Parents need to be models on how to handle their money faithfully.
1 Corinthians 11:1 "Be imitators of me, just as I am in Christ." God gave us His written Word, the Bible, and also sent the perfect model, Jesus Christ, to demonstrate how we should live.
Practical Experiences: (p119)Children need to be given the chance to apply what they have seen and heard. This will benefit the child in money management (the art if wise spending) and money making (the value of work).
Income: As soon as the child is old enough for school is when the book recommends giving an allowance. Of course the amount will vary according to age, the chore lists, and the family budget. You can expect your child to make money handling mistakes at first...they are learning....it is so important that you DO NOT BAIL THEM OUT!!!!! His mistakes will be his best teacher....when he spends all his money in one day!
You do need to make some boundaries and offer some advice along the way.....be sure not to put to many "rules" in place that will limit the learning experience.
We struggled with this at first because we don't feel like we should pay our kids to help do things they should do anyway......but when we got the perspective of letting them earn money for chores so they could be better equipped to handle money we were on board. We also agree with paying our kids to do "extra work". These would be things they are not normally suppose to do........helping to rake leaves in the fall, helping you to clean out the basement...you get the idea....
Budget: Begin with a simple system! GIVE, SAVE, SPEND..you can use three boxes, mason jars....whatever you have on hand...When they see that the SPEND money jar is empty..they know they have no money to spend....simple! As they get older you can expand the "Budget areas".
Giving: Start them while they are young....get them in the frame of mind that giving is IMPORTANT! Make sure they understand the impact their gift has.
SAVING: Make sure your kids understand the importance of compounding money over time. As your child grows establish short-term savings and long-term savings.....to a four year old saving for even a small purchase can seem like forever!
Debt: Teach your children how important it is to avoid debt. Make sure they understand how hard it is to get out of debt!
Crown Financial Ministries has resources for teaching all these principles..WE USE IT!!!! I woudl encourage you to visit them and invest the money in teaching your children...you won't be sorry you did!!! It is worth the money I can personallly testify to it!!!!
Just so there is no confusion....I am not being paid to say any of this....Crown Finanical is unaware that I even exist.....I have many of their books and LOVE to let people know about great resources such as the ones they offer.......