web analytics
May 25, 2015 / 7 Sivan, 5775
At a Glance
Blogs
Sponsored Post


Why Kids Need to Know That Money Doesn’t Grow on Trees

Two ways to teach your kids about money.
money-tree.jpeg

Have you ever told your children, “Money doesn’t grow on trees?”

Indeed, when a very young child sees his mom take money out of an ATM, he thinks that the banknotes magically appear. And when he sees Dad writing a check, he thinks money gets created by writing down what you want on a piece of paper.

Even though we all learn the truth about where money comes from, the financial myths and habits developed by people who are not taught proper financial skills early on persist into adult life. Children who never learn about saving and budgeting grow into financially unsavvy adults.

Two ways to teach your kids about money

Next time you take your kids to the store show them the truth behind the sales: the “great deal” on three tins of lemon chutney for half price is nothing but a marketing ploy because you would never normally buy lemon chutney anyway. When you compare two different cans of tuna, let your kids be part of the calculation of the cost per unit and which one is more value for money. If they ask to buy a treat, explain that there is a limited amount of money to buy food, and the perils of going over the budget.

When you give your kids an allowance, make it contingent on their giving a portion of it to charity. Then, a piece should go into the piggy bank, and then, and only then, the rest can be spent. This teaches them the concepts of saving and planning.

Delayed gratification

If your kids don’t have enough money saved to buy the toy/gadget they want, don’t run out and buy it for them. Teaching them to save for what they want lets them determine if it is “worth it.” If your budget allows you to buy the gadgets they want, instead of giving them the money straight away, consider employing them and paying them to do odd jobs. This teaches the value of money and hard work. Children need to learn from an early age they can’t spend what they don’t have.

Teach your children how to be financially responsible when they are young, when the cost of mistakes is relatively small. Perhaps the best lesson you can teach children about budgeting is that it isn’t restricting – it gives you the freedom to spend what you have.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning and investment services firm located in Jerusalem. He specializes in working with clients who live outside of the United States and want to maintain a U.S. brokerage account. Doug’s newest book, co-authored with Susan Polgar, about how using chess strategies to improve your finances, Rich As A King can be purchased at www.richasaking.com. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, FSI. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Contact at doug@profile-financial.com


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

5 Responses to “Why Kids Need to Know That Money Doesn’t Grow on Trees”

  1. Wanda Thibodeaux says:

    I couldn't agree more with this. My kids are 3 and 4 and we are making a conscious effort to teach them. They use tools like piggy banks, http://www.bankaroo.com, books, etc., and they know why mommy and daddy work.

  2. Wanda Thibodeaux says:

    I couldn't agree more with this. My kids are 3 and 4 and we are making a conscious effort to teach them. They use tools like piggy banks, http://www.bankaroo.com, books, etc., and they know why mommy and daddy work.

  3. You guys need to check out "SavingsFund" – it allows you to create funds online for your children for friends and family to contribute to, helping save money for college. Awesome idea. Check out this article — http://www.crowdfundingguide.com/savingsfund-powered-by-endertech-launches-crowdfunded-childrens-program/.

  4. You guys need to check out "SavingsFund" – it allows you to create funds online for your children for friends and family to contribute to, helping save money for college. Awesome idea. Check out this article — http://www.crowdfundingguide.com/savingsfund-powered-by-endertech-launches-crowdfunded-childrens-program/.

  5. You guys need to check out "SavingsFund" – it allows you to create funds online for your children for friends and family to contribute to, helping save money for college. Awesome idea. Check out this article — http://www.crowdfundingguide.com/savingsfund-powered-by-endertech-launches-crowdfunded-childrens-program/.

Comments are closed.

Current Top Story
Future guard? Arab child with Hamas headband aims toy rifle on the Temple Mount after prayers in the Al Aqsa mosque.
Hamas Declares Jerusalem ‘Eternal Capital’ of Islamic World
Latest Blogs Stories
Obama at Yad VaShem in Israel as senator and presidential candidate in 2008.

President Obama believes anti-Semites limit their anti-Semitism to discrimination and organizing, but will always put their survival first!

Doug Goldstein

What motivates a successful leader? Who are the best kinds of people to use as your role model?

Audience at Israel Day Concert

The warnings came true: Among the 1000 released terrorists, many returned to terror activity

Rabbi Levinger (zt"l)

Torah is to be lived. Rabbi Moshe Levinger was a completely living Torah, the Torah of Eretz Yisrael

“Said Rabbi Yochanan: Happy are those who see the fall of Tadmor…” (Talmud Yerushalmi)

Why has Prime Minister Netanyahu given Erdan & Hanegbi insultingly low-level cabinet appointments?

Without Israel, the Jewish People are scattered nomads lacking Torah’s true national grandeur&power

Will it get better/worse for Bibi or does the wily Bibi know/plan something that will shock us all?

Dr. Vernon Smith, 2002 Economics Nobel Prize winner, on predicting housing markets & economic issues

100% of the ‘First Responders’ helping those Arab school girls were Jewish and they didn’t hesitate!

Women equalizing with men in all areas of Judaism is anathema to the very idea of male/female roles.

Bibi endorsing the “2 State Solution” endangers Israel, moving the policy Center-Right from far Left

Dear Opposition Members… You seem confused… Let me clear it up for you… You lost.

A tribute to Jerusalem by its finest troubador, David Herman.

Do the food giants really care about our health? Are consumers now eating healthier food?

If other pleasures exceed the joy we feel for Jerusalem, then something is wrong with our Judaism.

More Articles from Doug Goldstein, CFP®
Doug Goldstein

What motivates a successful leader? Who are the best kinds of people to use as your role model?

Doug Goldstein

Dr. Vernon Smith, 2002 Economics Nobel Prize winner, on predicting housing markets & economic issues

Do the food giants really care about our health? Are consumers now eating healthier food?

Loretta Napoleon discusses what lies behind the growth of global terror-high ideals or money lust?

Does online marketing really work? And how can you build your own online startup company?

Learn why time management is important & how it can help build your business, from Jan Lukacs & Doug

Discover the meaning of financial freedom and if you’ll achieve the standard of living that you want

Are consumers becoming too impatient? What happened to the concept of the long-term purchase?

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/why-kids-need-to-know-that-money-doesnt-grow-on-trees/2013/06/20/

Scan this QR code to visit this page online: