The Value of a Dollar ~ Part 3, PRACTICAL Ideas~

Wait!  While this article is good alone, it’s intended to be read in order from The Value of a Dollar series. Start with Part 1 here. Then read Part 2 here.

Every parent wants to raise financial geniuses.  We’ve explored financial responsibility, now let’s delve into some practical ways to equip your children- from toddlers to teens- as they learn to value a dollar.

Little ones usually don’t comprehend money’s value.  In the van today, we discussed money-making opportunities.  We’re gearing up for our family trip and everyone wants some spending money!  Andrew (4) was shocked I’d be willing to pay him $1 for an involved job.  “A whole dollar?!” he exclaimed joyfully.  That dollar lost it’s glamour quickly when we discussed how much a snack or souvenir will cost.  Still excited, he now understands he’ll need to work hard to save for a fun trip just like Mom & Dad.

Children have limited opportunities to earn money.  Encourage them to be creative!

• Keep a “paid jobs” list.  Dave Ramsey maintains, and I agree, that certain chores are a child’s contribution to family life and are unpaid.  However, I often make a list of extra jobs I’m willing to pay for.
• Allowance.  If you say you’re going to give it, keep your word!  You may consider having standards the children must meet in order to receive it.
• Talk to the neighbors.  A responsible child may be hired to walk a neighbor’s dog, babysit, mow lawns, rake leaves, pull weeds, or house sit.
• Sell something!  Neighborhood garage sales are bi-annual in most N St Johns County neighborhoods.  Allow your child to set up a lemonade stand or join with friends to sell outgrown toys.

Now that they’ve earned some money, remind your family to “Save, Spend & Give.”

Searching for a practical way to encourage saving?  One local dad matched savings- dollar for dollar. Adam Frederick remembers, “Dad definitely built into me a desire to save and watch my money closely.  It was a lot of fun to watch the account grow.”

His Dad showed him monthly statements that tracked balance and interest gained every month over the 5 years he matched savings- until Adam started working.  “He built into all of us a lot of financial ideas along the way.  He cited Proverbs 22:7 when he taught me to always pay off credit cards at the end of the month and never build debt.  Dad was very intentional.”

As your children get closer to adulthood, consider involving them in the family budget.

Len Fontenot shared, “I sat my kids down and showed them real life. I’ve shown them how much comes in, how much goes out on basics, for savings, supplemental retirement and retirement, how much for emergency and how to manage and manipulate credit. My boys learn far better from what I show them as opposed to what I tell them. In other words if you are practicing what you preach show them how the family finances work and let real life be the teacher.”

Practice what you preach.  As you train your children in financial responsibility, remember you are writing part of your family’s story.  Let it be consistent of your values in the rest of life- full of faithfulness and generosity.

This article was originally published in The Creekline.