top of page

A Financial Coaching Blog

Send us an email at blog@monthlyfinancialcoaching.com if you have a topic you would like discussed.

Writer's pictureTreavor Dodsworth CFP®, CPA, CKA®

TEACHING KIDS ABOUT MONEY

My son is five years old. This week I was debating whether I should start paying him to work on our property. We had a storm come through and knock down a bunch of limbs. I thought what a great opportunity for him to have a job and earn some money. He could learn the connection between work, money, and then what that money can buy (i.e. a consumable good like a Dairy Queen blizzard or a physical good like Hot Wheels cars).


Teaching kids about money

I ultimately stopped myself before giving him the job. I pictured him thinking to himself, "Should I go out and pick up sticks to make money or should I build a train track with my sister?" I wasn't sure if I wanted him to ask that question yet.


What can I teach him about money? Below are a few thoughts:

  1. Connection between work and money - I still will probably do the above but not make it an ongoing job. For example, a one time pick up sticks, pay him $5, and then take him to purchase something with the money instead of something he can do at his discretion.

  2. Giving - Invite your kids into the giving process. For example, they can sit with you while you give to your church or other organizations and you can explain why you do it. Or you can have them give part of the money they are earning (i.e. a dollar of the five dollars or something like that).

  3. The final thing that I think is really important isn't necessarily money at all but just self-control. Learning to have control over your desires and feelings. Self-control is huge in personal finance. All the time we see something that we would love to have but just have to use self-control and say no to because we can't afford it or it is unwise.


I have three kids- a five year old, a two year old, and one to be born shortly. I am far from an expert on this. If you have any ideas that have connected well with your kids, we would love to hear them!

Comments


Commenting has been turned off.

All written content on this website is for information purposes only. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. The owner of this website takes great care to thoroughly research the information provided to ensure that it is accurate and current. Nonetheless, the content on this website is not intended to provide tax, legal, accounting, financial, or professional advice, and readers are advised to seek out qualified professionals that provide advice on these issues. All information or ideas provided should be discussed in detail with an advisor, accountant, legal counsel, and/or other pertinent professionals prior to implementation. In addition, the owner cannot guarantee that the information on this website has not been outdated or otherwise rendered incorrect by subsequent new research, legislation, or other changes in law or binding guidance. Neither Monthly Financial Coaching or it's owner shall have any liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website. In addition, any advice, articles, or commentary included on this website do not constitute a tax opinion and are not intended or written to be used, nor can they be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Any mention of an investment product or solution is not a recommendation to buy or sell. Past performance is not a guarantee of future results. Any mention of rates or return should not be seen as a guarantee those rates or return will be received.

bottom of page