5 Money Lessons for KidsSample

Money is finite. 

On the surface this seems obvious. But there is another level of understanding that happens when you actually experience it — by running out of money.

In my case, as a young 20-something, I came to terms with the finiteness of money when I ran out and began to “fake it” by living off of a credit card.  Thanks to the credit-obsessed society we live in, you can actually ignore this fact that money is finite for quite a long time. 

You can open all kinds of credit cards and pretend as if there will always be money that can be manufactured from thin air with the swipe of a card.

But at some point, often after a lot of significant consequences, everyone comes to terms with the truth.  And I did.  Maybe you have as well.  And you surely know someone who has, right?

So it is my goal to help my kids understand this so they don’t have to go through the pain I went through.

I began this with my kids as little as 3 or 4. When we would drive by Chick-Fil-A they would inevitably want fries. Even though fries don’t cost much, if we stopped every time, we’d blow our budget for sure. So Linda and I began teaching them that we weren’t able to stop each time because it costs money to buy the fries. If we continue to spend money on fries, we might not have money to buy other things we need, like shoes.  

It shouldn't be a shameful thing when you say something like that, because it teaches them that there's a reason behind the no: so you can say “yes” to other things! And there's this idea that there are going to be times when you can spend on things you don’t need, but there is also a time to say no and use wisdom to save for other, more important things. 

As kids get older, you can help them set up a budget so they are able to start to put pieces together of how much things cost, how to manage money wisely, and how to save.