I was thrilled to shoot this video with Tina, from the Widow’s Wallet. In our chat, we focused on how to talk to your kids about money, and how to instill great practices that will set them up for the future. As a Financial Coach, this is not only something I’ve experienced with my own two children, who are now young adults, but also with my coaching clients as well. Being intentional with how we spend our money is so vitally important, and can teach our kids how to think ahead in terms of spending. Here are the highlights in terms of how to show your children that you’re looking to bless them, not just for today, but for always.
Money As Motivation: Instilling a strong work ethic is step number one toward creating positive spending habits in our children. Having to work for the things they want instead of just being given those things can have a positive impact on their future. When kids realize that money doesn’t grow on trees, and that nothing comes for free, it can be the light bulb moment needed to make their money last. When it comes to kids and money, creating accountability is also huge. The concept of an allowance or chore charts can be really helpful in terms of structure and organization, while providing some powerful motivation toward making their own money. Showing your children that the more work they do, the more money they can make, is a great way to inspire them to work hard for their money, and to lose any expectations or entitlement.
Learning to exchange money for goods: Giving kids an understanding of what real world items cost can be truly helpful. Even something as simple as a trip to the grocery store can be a teachable moment for children in terms of what things cost. When the grocery bill comes to $200.00 and your child only has $20.00, it can be a powerful learning experience that will stick with them for life. Likewise, something like back-to-school shopping can also be great grounds for learning. You could spend $100.00 on a pair of Nike’s, or you could ditch the designer brand and let your money stretch further.
Compare And Contrast: The power of choice is not only empowering for children, but can help them to build better habits with their money. Educating your children on things like buying brand name items versus the generic option can help your children to make smarter spending habits. Likewise, looking at what’s on sale that week, and figuring out what gives you the most bang for your buck will be something they carry with them for life. Things like clipping coupons and planning your shopping trip ahead of time can also be helpful toward solid spending habits.
Cash Versus Electronic Funds: It’s generally much easier to stay in budget when you’re working with something tangible. If you give your child $20.00 in cash, it can make it much easier for them to make their money last. They cannot overspend with cash as you could with a debit or credit card and it’s easy to see what you have left. You just don’t FEEL it the same way when swiping a card, so encourage your children to work with cash, learn to count change, and build better habits for the long run. This also helps to discourage things like racking up credit card debt. I get the new reality of online shopping and people not taking cash. That’s why I’m a HUGE fan of the new digital spending app & bank called QUBE MONEY This is sort of the best of both worlds. You can set a specific amount of money in a “qube” (specific category) and when you swipe your Qube Money card it won’t allow you to spend any more than what is allotted in that particular category. They are developing a family account and each kid could have their own qube and card! The teens of families I’ve had using it already love being able to see just exactly how much money they have and it encourages saving for the things they want. Click the link and take a look at how it works or contact me for more information!
Those are just some highlights, but be sure to check out the video for all of my tidbits of advice on how to get your kids interested in money, in order to set them up for success for the future. No matter what your age, if you feel you would benefit from some personal financial coaching, let’s set up your 45-Minute Initial Discovery Session to see if we’re a good fit to work together. You can sign up for your virtual session here.