196. Teaching Kids to Be Smart with Money

Parents are often hesitant to talk to their children about sex and money on a personal level. The lack of serious money talkleads to kids who don't know what their parents make and much worse, what things cost. This often gives our kids a skewed perspective of the reality of money and finances.   Show Highlights   It is important to be intentional in teaching your kids about money. Financial wisdom doesn’t come from a lesson, but from hundreds of experiences wisely processed. It is not just important to go through certain experiences, but to process them and learn from them.   Don't automatically bail your kids out of foolish decisions that they make when it comes to money. Praise God for foolish decisions! There's nothing better for a young person to go through than a foolish decision that they own. It will teach them better than most anything else.   There are 5 principles that you should teach your kids to help them to be smart and wise with money:   1.Working –When we talk about finances, the first thing to talk about is working. Emphasize the importance of earning through honest work. Establish a good work ethic in your children. Try not giving them an allowance. Instead, replace it with a commission system in your household to set them up with a mindset that when they put in the hard work, there is a reward to be earned.   2.Giving –Part of your child's hard-earned money should be allotted for giving. This goes to the Church collection, teaching them to give back to the Lord and be involved in the work of God.   3.Saving –Teach your children to be the best friend of their future selves by allotting money for their savings. Motivate them by setting a goal or item they are saving up for.   4.Spending –Guide your children in making wise decisions when spending their money and making their own purchases.   5.Debt –This is harder for children to understand, but is no less important in your child'sfinancially literacy. Start talking to them about debt when they are young to ease them into an awareness of what it is.Teach your kids to pay the Lord first, their future selves next, and live off of what is left. Strive to raise children who are wise, generous, and smart in the way they handle their money.   [bctt tweet="There's nothing better for a young person to go through than a foolish decision that they own." username="jaydholland"]   Resources Mentioned Sponsor: Perfectly Imperfect, Oct 23-24 Sponsor affiliate: Hopegivers The Christian Parenting Podcast Network on www.christianparenting.org Things for Thursday and free e-book: Text THINGS to 66866 Book: Financial Peace Junior Kit by Dave Ramsey Previous episode: Anthony Oneal: Debt Free Degree   If you find this podcast helpful, you can subscribe and click here to find past topics and free resources. Feel free to share with others, as well! If you would like to help support Let’s Parent on Purpose, you can do so by becoming a patron.   I send a weekly email called “Things for Thursday” and it includes things I’ve found helpful related to parenting, marriage, and sometimes just things I find funny! You can sign up for “Things for Thursday” by joining my newsletter on my homepage.   Thank you for your continued support of this podcast. If you have a prayer request or if you have a topic suggestion or question, please contact me at my email.