1. Let them make money by working.
In order to teach kids how to manage money wisely they need to have the opportunity to work for a weekly amount of money even if it’s just one dollar.
Mitchell and Sophie have the opportunity of making $5.00 a week in household chores if they do them all. They also have non-paying responsibilities around the house that they are expected to do just because…. well, because they live here. Mitchell mowed a neighbor’s lawn this summer so he made some extra money and this got Sophie wanting to make more money.
So she decided to earn extra money by making a lemonade stand. I rolled my eyes and prayed she’d have a few customers because I really didn’t think it would go well but she really really wanted to do it so I let her.
She made $13.50 her first hour and she’s only selling it for 50 cents! The second day she hired out help and made $40 in less than 2 hours. She hired me to make the lemonade ($1.00) and split the profit down the middle with the friend who helped her sell. HA!! Doesn’t the UPS Truck, Taxi van (?) and police car crack you up??? It totally blessed my soul that they would buy lemonade from the girls. (And yes, I was watching closely….. Mama bear showed her face upon every lemonade transaction.)
2. Teach your kids to do 3 things with every dollar earned. (Give.Save.Spend)
Whether it’s $1.00 earned or $20.00 earned we teach our kids to do the same three steps: They put their money in three different envelopes: Give (tithe 10%) Save (saves 10%) and Spend (what’s left over – 80%). Sophie is saving up for a bike so all her Spend money will go towards a bike soon. Her “Save” money goes into her savings account to offset college expenses. We/she deposits it in her savings account every six months. And every six months she puts all her Give money together and gives that money in an offering at church. Mitch does the same thing. And we do the same thing with our money.
It’s a discipline that has the potential of changing your child’s life when he or she is older. If they can get into the practice now of giving, saving and spending it will become a life long habit that will give them a strong foundation going into marriage.
Want to teach your kids good financial cents? (ha! ha! I couldn’t resist) Then check out Dave Ramsey’s materials. The Financial Peace Junior kit is awesome and very affordable. I love it out of everything out there I’ve tried as far as chore charts, payment charts, etc. There is actually a Financial Peace Junior Bible Study that is downloadable. Our church is starting this study for kids 1st -5th grade this month. The envelopes you see in the picture came in the Financial Peace Junior kit. It comes loaded with some other great resources as well.