TIPS Set Positive Money Management
Examples For Children
Debra Schroeder, 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. They notice whether parents argue or discuss calmly how money is to be spent, who pays the bills, and who keeps the records. This role as observer while still a child will be a subtle but significant influence on how a person feels about money throughout life.
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. So set a good example. Is money used in the family by parents as a bribe, reward or means of control? Are material goods craved? Is there an effort to keep up with the Joneses? Is more emphasis placed on the cost of a gift than the feeling of giving it? Since children are masters at spotting inconsistencies when parents say one thing and do another, be sure to practice what is preached.
Use every opportunity possible to teach smart buymanship. Help children learn to read labels, to ask clerks questions when they do not find information they need on labels, and to recognize a good buy. Take them with you when you shop. Explain why you choose to buy one item over another. Then offer guidance and suggestions when children are doing their own shopping, but remember, the final decisions are theirs when they are spending their own money.
Set a good example in the use of credit. Credit involves responsibility as well as privileges, so be sure to pay debts promptly. Because credit is a necessary part of living in society, avoid making children afraid of it. If children have to borrow from their parents to meet unexpected expenses, set up a definite repayment schedule to give them some practical experience in using credit.
Put Them "In the Know"
A recent study indicated that there is much less fighting about money in families where financial matters are openly discussed. 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. Most children don't want all the details of their family finances but they need to know the family, as a family, is secure. After all, family stability is probably the most important fact in their lives.
Answering your children's questions about the family's finances may be a lot like answering their questions about sex: answer the questions but don't repeat the whole book when a simple sentence or two will do the job. Ask yourself what is it they really want to know; then answer that question, but don't burden them with details they can't understand.
To learn more about children and money request from your Extension Office a copy of the NebGuide AAbout Children and Money@ (G 93-1164) or visit the web at http://ianrpubs.unl.edu/homemgt/g1164.htm.
If you want to leave feedback about this article, go to unlforfamilies.unl.edu and click on TIPS.
