I am not yet a parent but in the not so distant future, I will be. As a parent, you want to give your children the life skills to survive on their own when they grow up. Part of that is teaching them about saving money. How do you do that? You have to teach them intentionally!

Work. Work is how money is made. There has to be an emotional and intellectual connection between work and money. Because this connection needs to be emphasized, you should never use the words “allowance”. Instead, you should use the word “commission” or “incentive” to your kids. When your kids do chores at home, they get their incentives. If they don’t do their chores, they won’t get get paid. However, be considerate in giving chores to your kids depending on their age and capacity.

Giving. Let your kids’ giving be spontaneous, and give tons of affirmations for giving to anything. Guide your kids about how much and where to give. Just let your kids grab some of their cash from their piggy bank to offer during mass. Giving their own money makes your kids less self-centered and brings them depth of character.

Saving. When teaching your kids about saving, the goals should be short-term. When they have saved for say a PSP, and they buy it, there is a sense of pride that will make parents smile a lot more than if you simply bought it for them.

When your kids are small, you can use a small transparent container or coin jars for their money savings so they can register visually see the saving going up and the spending bringing their balance down. As they get older, use envelopes for giving, saving, and spending. When they reach the teenage years, they should have a savings account of their own.

Spending. Spending is done differently when you are spending money you earn. It is one of the rewards of disciplined saving and working - the celebration of a goal-reached! When spending occurs in this way, your kids’ self-esteem will be maximized because he was able to accomplished a goal. There is a sense of accomplishment, of a job well done!

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