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TIPS
Children and Money
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Andrea Nisley, Extension Educator
University of Nebraska Cooperative Extension
Money takes on a new meaning when there are children in the family. Parents realize the added pressure on the family’s income to cover more wants and needs. They also feel and express a concern for helping their children develop healthy, positive attitudes about money. Attitudes and habits about money are learned at an early age. Very young children begin to learn about money by observing how their parents feel about money and react to it.
How can parents teach their children so money will be a positive factor in their adult lives? Some ideas and suggestions include:
Set a Good Example - Actions speak louder than words in forming attitudes about money. Use every opportunity possible to teach smart buymanship. Explain why you choose to buy one item over another.
Put Children "In the Know" - Help children develop a general understanding about the family’s financial picture by allowing them to know the source of the family’s income and a general "ballpark" amount figure.
Family Financial Councils - A family financial council gives everyone in the family a chance to express their ideas and wishes and sit in on family discussions and decisions about how to spend the family’s income.
A Regular Allowance - When children are old enough to tell the difference between coins and when they begin to ask for money of their own, it’s time to begin a regular allowance. The amount should be a fair share as it fits into the family’s total spending pattern.
Let Children Make Mistakes - Give children full responsibility for their allowance. Let them make their own decisions and their own mistakes. Learning to live with the results of spending money is a valuable lesson.
Keep A Simple Budget - Help children develop a simple plan for their spending. Encourage children to think of money to spend, money to save, and money to share.
Encourage Sensible Saving - Children will be more inclined to save if they are saving for a definite purpose. But make that purpose an immediate goal rather than long range. A 10-year-old will get more excited about saving for a new bicycle than saving for college.
This week practice smart buymanship with your child as you shop for groceries. What ideas or suggestions do you plan to use this week to teach your children about money? Contact us at unlforfamilies@unl.edu and let us know your progress in teaching your children about money.
Source: About Money and Children, NebGuide G93-1164-A.
