Here’s a real life example of a great way to teach your kids about money.
I was on welfare for a while when my kids were younger. Of course, getting only one check per month made the lack of cash flow more obvious. One day, when I said we couldn’t afford something, they asked, "Why not – you just got that big check?!"
So, I sat them down and wrote the numbers down side by side. I wrote how much the check was on one side and how much I had to pay to others on the other side. I subtracted as I went and they saw the "big" check going down faster than they realized.
They never bugged me after that quite like they had before. I derived the idea from a different idea about how to show kids the realities of cost and the dreams they have about sports cars, big houses, etc. I just adapted it for my situation. I know most parents don’t really want to tell their salaries, but sometimes it can help kids to understand when things are tight.
This is a great idea. I have never understood why parents won’t tell their kids their incomes and let the kids sit down with them while they are paying the bills. This is probably one the best things you could ever do with your kids.
Not only that, but it teaches and gives children a better idea how to use a checkbook, balance a checkbook, be responsible with credits cards and generally make better financial decisions. I am so surprised about how many adults don’t have a clue where to begin teaching their children any of these things. Once again, it shows how important it is to train your children in every area, including finances.
Photo By: Betsssssy