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Kids learn almost every day and they learn from their parents, which is why it is important for you to have good money habits.  However, if you do not don’t worry.  You can still teach kids good money habits while getting out of debt or cleaning up your own financials. We have 10 steps to cleanse your budget.  I actually learned good money habits along my journey of life and it started while I was a kid at home.  I learned the responsibilities through chores. We got money for special occasions like birthdays, tooth fairy, Christmas, and Easter. I learned most of my money skills when I was in high school and college when my parents divorced.  I had to figure out how to pay for things on my own while going to school and playing sports.  I worked hard and earned money, and I am sure you are doing the same!

But enough about me.  Let’s go on and learn about the 15 things you want to teach your kids to be better with money in their future.  To make the right decision about money and not go into debt. If you instill these 15 things, you will be giving your child a better life and make them feel on top of the world.  Let’s go make them feel on top of the world!

1. Chores Instill Responsibilities

The first one is encouraging your child to do chores around the home at an early age.  Yes, when I was little I had chores. To this day, I still make my bed every day!  There are sometimes when I go home that I choose not to make my bed because I know my mom will spoil me!  A secret too – I even make the bed at the hotel – I know, I know what you are thinking…like really? The maid will take the sheets off anyways and clean them!  I guess my mom was just that good at telling us to make our bed. 

You can teach your kids good money habits with chores.  For each chore, you can give them a token.  Your “token” or money can be whatever you would like.  If they are young, you can use coins (nickel, dimes, quarters) whatever you have around your home.  If they are older, I would use more dollar bills (quarters, ones and fives). This way whenever they do a chore or chores you can reward them with an “income.” Just like at work.  Teaching them that chores come with responsibilities just like adults where they earn an income too.

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2. Budget – give, save, spend

While your kids earn an “income” with chores.  They can learn how to split their money and budget it as well. You want to teach them the concept of giving a bit of their earnings.  Ask them why they should give. Show them it feels good plus the benefit that good things will come back to them.  Take them somewhere to give their money.  We will talk more about this in the next point. Also teach them to save up for certain things such as toys, activities, and camps.  Hello! Parents you can use this to your advantage! Think about while you’re at the grocery store and they say, “I want a piece of candy!”  You can then say, “Okay, you can spend your money on it if you would like.”  It will give them a different perspective! Which brings me to the spend portion!  They will spend it on what they want and then also learn when the money is gone it is gone.  They need to learn this in the home before they are adults and go into credit card debt, student loan debt, personal loan debt, etc. The key here is just the overview of when to budget. Let’s go more into depth in each area.

3. Giving

This is probably the best one of them all because when you teach them giving it puts the good into their soul.  The world needs more good!  I love when the news talks about the kids giving their money to people who need it more than they do.  It means their parents did an amazing job raising them!  If I were to bet, God rewards them even more after they do this.  This is just the beginning of them learning about faith and that they will feel the grace God gives us. 

How to teach giving?  Show them you give.  I remember my parents always placing a check into the church offering plate. Once we got older they would let us take the check and put the check into it!  Even though it was not my personal money then it still stuck to me and we give monthly.  It is the first thing we budget in our budget just as the word says.

Proverbs 3:9 Honor the Lord with your possessions and with the first produce of your entire harvest. 

• Give to your church
• Give from their chores/piggy bank to local animal shelter
• Local food pantry
• A friend in need

4. Savings

Most people do not know how to save.  They just spend all their money, so this is huge to teach your kids to save early.  Teaching them to save up for what they want instead of just buying it for them.  Savings allows them to feel thankfulness when they save up for their big toy and they can feel proud of it!  It is irreplaceable! 

You can teach this by having them go to a bank and interact with a banker to open their savings account.  I remember my parents doing this with me, and it is probably why I am such a huge saver! 

• Print the “save” envelope
• Reach goal and deposit it into the bank (in person and via app)

5. Spending

Spending allows them to know they can only spend so much. If they do not have the money they cannot spend it. Goes along with teaching them that you as a parent aren’t their bank and all their money. They have to work for their money. 

• Play restaurant at home giving tips and monopoly money/play money
• Play grocery store
• Play shopping at a mall

6. Money management is a key part of life forever

Being able to manage their money will be with them forever.  It will go into their single years in college, their marriage, and until they die.  I always think that it is a good asset to teach your kids money management while they are under your roof. It is similar to they way you raise them on other things like good manners and having an education.

You can have them help you with certain parts of the budget to manage money in the household.  Such as the grocery budget. Start with a meal plan, have them come up with the items you need for the house, and then take them to the store to pick it out, then have them do the interaction with the cashier.

7. Read books about money at an early age

There are a bunch of books out there for kids.  I will name a few. Just a piggy bank by Gina and Mercer Mayer, Lemonade in Winter y Emily Jenkins, Earn It! A Moneybunny book, and Spend it! A Money bunny book. 

8. Money doesn’t grow on trees

Who’s parents used to tell them this line? My dad used to always tell me this, but I did not listen.

Creating a sense of knowledge around where money comes from is important.  Explaining to the kids you must work for the money by doing things around the house to earn money.   This way they understand money does not grow, but it is earned.

This is also a good thing to teach them as they get older to learn how they are going to pay for college and their first car.  Teaching them they should pay for their way to college instead of taking out students loans, and same for a car.

9. Work hard to get money

Kids learn they must work hard to earn the money.  When kids do the dirty work it makes them feel better.  It makes them have an urge to do more and complete more around the home to earn more money to buy other items.

I remember when I was little I used to work on the farm at my friends house.  We did this for free, but imagine how much more they would have gotten out of us if we would have been paid a $1!

• Create a lemonade stand
• Car wash
• Mow lawns at a neighbors
• Make a cookie/sweets stand
• Rake leaves for neighbors

10. Allows kids to dream

Dreaming is good and it is a basic life skill.  

In our life, we have always dreamed of a career and we must do good at that career. Let them see the possibilities are endless!  When they work hard, they dream, and they earn an “income” or money.

Ask them how they want to earn money when they are adults. 

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11. Practice makes them better

Practicing how to deal with money while they are still under your roof is a key to get them to have good habits out of their home.  I remember my mom telling me she did good raising us 2 girls because we have a good roof over our head and food to eat, we believe in God, and we seek and love our family.  I agree!

Now when I raise my family I want these four things for my kids. God, family, enjoy the journey, and how to make money work for you rather than against you. Teaching them the principal of money and knowing you cannot spend more than you make. To not be a slave to the lender because that is what God wants for us.

Practicing money skills is just like practicing hitting a baseball.  You go to hitting practice over and over again to get better and better! 

12. Earning money makes them feel good!

Kids want to feel good, and earning money does that!  I remember going to my sisters house and my niece showing me her money she earned!  She was so excited even if it was a few coins.  I was so excited for her I took photos of her next to her chore chart and gave her a big hug!

These are the feelings you want them to remember.

13. Doing better makes us feel on top of the world even if we aren’t rich

As long as kids continuously sees they are doing better and better each month with their money is the key. They do not have to be rich by the time they leave your home at 18, but they need to know that they did the best they could.

Learning you can always do better and learn from others. I always tell people you need a mentor whether it is a money mentor, life mentor, or school mentor. 

Life is a journey!

14. Teaches them money mistakes early

Teaching them the value of money and if you spend all you have then you are out of luck until the next pay day comes. They can work for more money, but they will still have to wait for the money. 

Teaching them also you do not want to do a payday loan because when they really get paid they will not get the full amount of money, but half of it because of the “interest” of their loan. Discussing what interest is and how it can be good and bad.  

15. Not everything in life is fair

The best one for last is not everything in life is fair.  Maybe your kids want a bike, a hot wheels car, and a new lego set.  They only have enough money for the bike or the hot wheels car and the lego set. They could get 2 for the price of 1, but they cannot get all three until they save up more.

Like it, if you agree to teach your kids good money habits while they are at home.

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