web analytics
August 29, 2015 / 14 Elul, 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

The author's opinion does not necessarily reflect the opinion of The Jewish Press.

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
Swiss Amb. to Iran Giulo Haas presents his credentials to Iranian Pres. Rouhani
‘US and Iranian Cartoon Doves’ Shown Defecating on Bibi by Swiss Amb to Iran
Latest Blogs Stories
haredim-no-women-allowed-sign

The Halacha of shmirat einayim (guarding one’s eyes) is incumbent on the MAN; it’s his obligation

Doug Goldstein

Dem. presidential candidate Doug Shreffler talks about his campaign & its motto “as good as it gets”

Jewish Press Blogger, Jordana Brown

I’ve decided to move away from my safety net-and I wouldn’t change that decision for anything.

Was “Jerusalem” the song Matisyahu planned to perform? It was the PERFECT response to BDS campaign

If the world’s winds of hatred bring Jews to Israel we are ready, joyfully offering them a home here

At what age should the realization start setting in for kids that we live in an uncertain society?

Spain’s SeaWorld canceled Zionist-spy dolphin’s performance unless it supports a Palestinian state

How does the Iranian deal affect anti-terrorist legislation adopted by a number of US states?

Shabbat afternoon soccer games, a tradition in Israel’s league, may become a thing of the past.

Calling the Jewish Press‘closest thing to a frum English-language weekly’ insults the publication

So long as Jews dance for the sheer pleasure of thanking God, Israel will never be defeated!

Why are wealthy people less likely to gossip? So if you get rich you’ll cut down on Lashon Hora!

Matisyahu was bounced from a music festival because he wouldn’t sign pro-BDS, anti-Israel manifesto.

Danon is still young, perhaps one day he’ll succeed Bibi. Representing Israel in UN is good training

I think it has been a major tactical mistake for Israel to consider Iran a particularly Israeli problem. And it is of crucial importance for Israel and Israelis to stop thinking that we have any influence on international leaders when it comes to anything, including international policy re: Iran. That’s why I think that Yair […]

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Dem. presidential candidate Doug Shreffler talks about his campaign & its motto “as good as it gets”

Doug Goldstein

How does the Iranian deal affect anti-terrorist legislation adopted by a number of US states?

Why are wealthy people less likely to gossip? So if you get rich you’ll cut down on Lashon Hora!

What has made Israeli innovative startups world leaders in high tech?

Author Gail Reynolds offers great advice for Mom’s wanting to build a business around their families

How can you remove anxiety and worry from retirement planning?

What is peer-to-peer (P2P) networking? How does it help you access what you want in the internet?

What is the impact of renouncing US citizenship if you live abroad? Can you visit the US again?

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: