Teaching Finances & Money Management
What We Must Teach Our Children
M oney and finances are usually not taught in schools. Parents seldom teach their children these subjects either. We must not only recognize but also teach our children that their daily decisions about money may effect the rest of their lives. Our children are taught--even if it is not communicated verbally--by our actions. Our perspective, habits, and patterns of thinking regarding money will automatically be passed down to them.
If your children are raised seeing you make purchases with credit cards, they will probably use credit cards and have more difficulty with debt than you do. (The consumer credit card debt of today is one reason that we should teach our children the value of increasing their financial IQ.) If we live paycheck to paycheck, more than likely so will our children. But if we save money, tithe and give abundantly, our children will probably have these same money habits.
The Poor Man's Mentality:
- I can't afford it.
- It takes money to make money.
- I am not interested in money.
- I don't care about money or care to talk about it.
- But you've got to have a safe, secure job.
- The rich are greedy.
- Play it safe and don't take risks (or move by faith).
- Be a hardworking person and save money.
- That's too expensive.
----As a man thinketh, so is he.
Even if you do not agree that all of the above attitudes are contrary to
God's Word, we can probably agree that all of the above, in some respect, place limitations on God in our lives and bind His power for us to receive "abundantly above that which we ask or think" ".. a blessing that there shall not be room enough to contain." (Eph. 3:20, Mal. 3:10, etc. etc.) "
Our Children Must Learn:
1. How to make their money work for them.
2. The importance of creating their own retirement plan. (not company or
3. The value of investments.
4. The importance of money management.
5. There is always more to learn.
6. It doesn't take money to make money.
7. A wise man plans and establishes goals.
8. The correct definition of assets and liabilities.*
Give your children power before you give them money. Teach them that they are a genius, they are gifted and each child has been given their own unique gifts and abilities by God. It is not God's will that any of his children be poor. Being poor or living from paycheck to paycheck is not an abundant life by any means. Jesus came "...that we might have life and have it more abundantly." (John 10:10.) Teach your children to tithe and give regularly as soon as possible. We know the value of teaching them to share toys when they are but tots. How much more should we teach them a tenth belongs to God?---this should be a habit and is much easier to start when they are young. Teaching them the reason to tithe for their sake is a good first lesson. Malachi 3:11 is the starting point to teach why we tithe. The Lord will quickly confirm and reveal to them the blessings and benefits that automatically follow.
When our oldest child was about seven years old we lived in a lower income neighborhood. One day a little boy down the street stole his skateboard. I, protective mother that I am, retrieved the skateboard and brought it back to him. Two days later I saw our son from the window handing his board to this same boy, who headed back home with it. Upon questioning my child when he came inside, his reply was "mommy, he's "more poor" than we are so I gave it to him." I was so proud of him, told him so and that God would bless him. Not very long afterwards while shopping at a Christian bookstore, the clerk encouraged him to register for a free drawing. It was for a skateboard. By the time we got home I knew in my heart that he would win that skateboard. Sure enough, within that same summer a nice, very expensive skateboard was his. I could, as many of you, write a book with such testimonials of giving and sacrifice. God will make sure your children see the just rewards of a giving heart. He is a perfect Father. He is always ready to help us teach money management and basic principles to our children.
The book below is a great resources to help encourage the development of confident and responsible money skills. It includes case examples, sidebars, and attitude recommendations. Due to lack of sales, we no longer carry the book, or the adult version in stock.
Rich Dad, Poor Dad for Teens: The Secret About Money That You Don't Learn in School.
By Robert Kiyosaki
7th Grade - Up. Great for
homeschoolers. Click on the Buy it here link below to read some of the contents. Other titles are also available on the link.
buy it here
*A true asset generates money. The bank
that holds the mortgage on your home lists your home as "their" asset. Therefore your home is not "your" asset, even if it is paid for and you hold the deed, as long as your live there. If you do not live in your home but lease or rent, it generates an income and only then is it a true asset. If one lost their job or became incapable of working, the mortgage on your home would become a big liability. If one became unemployed their liabilities and assets would quickly become clearly defined.
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