Money-Smart Kids

"Too many kids only think about the "in" name brand or look when they go
shopping, and put pressure on their parents to have the best."

How do we develop our attitudes about money? Are there certain
personality types that are more inclined to be savers? Spendthrifts?

A woman was telling me about her nephew, who from a very early age,
has always been very close with his money. His mom was a single mom,
and so they had to watch every penny they spent. But one day, when a big
kids' movie came out, they splurged and she took him to see the movie
that everyone wanted to see. She went to buy popcorn, but didn't quite
have enough money. She quickly borrowed some from her son.

Sitting in the darkened theater, waiting for the "must see" movie
to begin, all of a sudden she noticed her son was crying.

"What is the matter?" she inquired sympathetically.

"I want my money back," he whimpered.

While we can understand a three-year-old worrying about getting his
money back and say it is just immaturity, in this case the boy grew up
to be a teen who still knows the value of a dollar.

I've noticed with our own daughters that one has a very casual
attitude toward money, figuring things will work out in the end. Another
has always been thriftier, while the third seems to be a combination.
Just this morning they were discussing their bank accounts: one said she
was getting worried because she only had $400 while the other only had
$70 to her name and wasn't overly stressed.

I was amused when I heard of one teenage boy who was so thrifty
that he was known to break up with his girlfriends right before Christmas
or a birthday, when he'd have to buy them a present. So the family knew
things were serious when he decided one girl was special enough to keep
going together right through Christmas!

But regardless of what kind of attitude toward money seems to come
as "original equipment," one of the most important lessons we parents
teach is how to handle money.

Too many kids only think about the "in" name brand or look when
they go shopping, and put pressure on their parents to have the best.
One way to help cure this urge is to put kids on a clothing allowance
when they reach a certain age, maybe middle school. They get so much
clothing money allotted each spring or fall, and when it is used up,
there will be no more clothes until next season. Our daughters learned
to appreciate this method. They soon learn that the dollars will go
further if they buy from the discount department store instead of the in
shops. They might even decide to sew, or shop second hand.

One book, Money Savvy Kids, by J. Raymond Albrekson (WaterBrook
Press), centers on teaching five faith-based guiding principles to
children in regard to money: the importance of work, giving, saving,
spending carefully, and avoiding debt. "Today's kids are at greater risk
than ever of buying into the instant-wealth culture that dominates our
society," he notes.

William Wood, a professor of economics at James Madison University,
Harrisonburg, Va., has written a forthcoming book, Plain Money, which is
an overall guide to handling money. As a college professor, he says he
has seen too many students who left home without having had to make
spending choices and face the consequences. The result is young adults
who don't know how to handle money. "Young people can become financially
responsible if they face increasing privileges, and increasing
accountability, as they grow up," he says. "Gradually they are given
more and more responsibility, until as young adults they can stand on
their own."

I think this is the key to children learning the value of a dollar,
and the value of their own hard work.

Another Way column by Melodie Davis

From: jgat@mozcom.com