Stewardship, Your Kids, and The Three Little Pigs
Teaching kids about money
- Should allowance be something children are given, or should it be earned?
- What do I do about the child who spends everything all at once? And what about the kid who won’t spend anything at all?
- How can I tell if and when my child is ready for a new responsibility?
1. Teach kids to take care of what they already have if they want something more.
- When I want to know whether or not one of my employees can handle a big client, I take a look at how he takes care of his small clients.
- Start out with small things and see how that goes before challenging them with bigger things.
- Teach your child: “If you want to earn the right to have a car, show me how you take care of your bike. If you want the responsibility of a dog, show me how you take care of your goldfish.”
2. Do not give allowance like it’s an entitlement.
- Harder tasks are worth more money. Easier tasks are worth less.
- Consider age-appropriate chores when assigning monetary value.
- Giving children money they don’t first have to earn sends the wrong message. It teaches them that financing a lifestyle is normal, when in truth it leads to debt, stress, and the wolf at your door.
- Doing the hard work of building something you want for yourself leads to self-reliance, responsibility, and a feeling of well-being.
3. Teach your kids how to SPEND, SAVE, and SHARE.
- Help them decide on a formula such as 70%, 20%, 10%.
- This will allow them to set aside an amount for spending on short-term items such as movies or treats.
- Long term goals such as big ticket items.
- And an amount that teaches the power of giving first. This might go towards a community cause such as a food shelter, a charity, tithe at church, or youth group.
- You can have some fun here designing your own special piggy-bank, divided into 3 sections. Or maybe you will have three separate banks to remind you of the parable of the 3 little pigs!
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