Involve Children in Finances

Over the holidays all five of our children were at home. It was a special time as we enjoyed the opportunity together to spend an entire week celebrating and enjoying good company. We also did something you should be doing in your family. We had family meetings.

I truly believe you become what you think about. If you constantly think about how you can have a better family, you will find ways to improve your family life. During our family meetings, we focused on things we could do to keep us close as a family, despite some of our kids off at college. We focused on family memories that have bonded us. And then we talked about something secret in many families: Family Finance.

Improve Your Family Spending
If you have never talked to your children about money, it’s time to start. It can actually be enlightening to talk to your children about what money means to them.

Although we have a great income now, that was not always the case. Our older children grew up with a mom and dad who lived paycheck to paycheck. They remember what it means to have to save for things and go without. Our youngest children have never known a house with those financial constraints.

As we discussed money, it was neat to see how the different backgrounds influenced each of our children’s take on what money means to them. It was also educational as we discussed what financial independence meant to them.

Teach Kids About Money
I would highly recommend involving your children in your financial discussions, especially those that really involve them individually. Even very young children can learn about money on some level. When you discuss finances with your children, you should make sure to help guide them in understanding the type of importance money should have in their life compared to other things.

As children grow older, you can involve them in more sophisticated discussions about money. You can teach your children to become tomb savers, to tithe, and to donate to charitable causes. You can teach them to pay themselves first, no matter what, throughout their lives. That one rule alone has the possibility to make them financially independent.

Teach Kids About Investments
As your children continue to grow, you should teach them how to turn their savings into investments. You should teach them how to make their dollars start working for them. Teach them the importance of having money work for them instead of them working for money.

Don’t you wish someone would have taught you those things when you were young?

Teach Kids About Reasons
Perhaps the one thing people leave out most often when teaching children about money is the reasons why they should want money. Children should know from an early age that there are more important things in life than money. But that money, when it works for you, allows you the opportunity to spend time on those important things.

I think today’s society is teaching the opposite. Today’s society is teaching children that money is the most important thing. It is your job to teach your children the truth.

I encourage you to take some time once a month to review your family’s finances with your children. Base your child’s involvement around their appropriate age level. You just might be surprised at what your child learns – and at what you learn too.

[Ed. Note: Let Dr. Reynolds guide you in planning your family finance this year. Purchase his Living Every Minute Activity Book Program on his website today.]