Teach Children That Spending and
Earning Go Hand-in-Hand
(ARA) - Kids always seem to be asking their parents
for money. Whether it’s an increase in their allowance, money to buy
the latest tech toy or a cool outfit for school, one thing’s for sure
-- they want it. And the older they get, the more they want.
By the time kids reach their teens, they’re spending
an average of $101 per week of their own and their parents’ money in
2003, according to a study by Teenage Research Unlimited. And the National
Retail Federation reports that the average household spent $451 on back-to-school
shopping this year.
With youth spending on the rise, when is it appropriate
for kids to start earning money?
"Parents should start teaching the concepts as
early as possible," says Suzanne Olson, editor and spokesperson for
IHateFinancialPlanning.com, a Web site that uses humor to get serious
about financial planning. "Home is the perfect training ground for kids
to learn how to respect money, stick to a budget and make choices.”
To help your children get started on the road
to financial responsibility, IHateFinancialPlanning.com offers the following
tips:
Play shopkeeper. There are some simple games
you can play with kids as young as 3 and 4 that will both entertain
them and build a basic understanding of money. Use play money, and let
your little shopkeeper place the sales revenues in a toy bank.
On trips to stores, talk to your young children
about the basics of shopping for sales and using coupons. As soon as
children show an interest in counting, you can use real coins and help
them start learning how to pay for things we buy.
Settle the allowance question. Kids usually start
to get a little more sophisticated about money between the ages of 9
and 12, when their desire to acquire kicks in. When it's real, not play,
money they want, it's time to decide whether an allowance is appropriate.
Some parents believe in giving an allowance for
household chores, while others think kids should do chores as part of
family living. If an allowance is in your child's future, set your expectations.
Decide if you'll permit your child to earn extra money above and beyond
a weekly amount. And if you're unsure how much allowance to give your
child, IHateFinancialPlanning.com has a suggested monthly allowance
chart for children of various ages.
Ways to earn extra money. Be creative. Many of
the ways to earn extra money that were around when we were kids may
not exist any more. Sure, some of the old standards still apply: selling
lemonade, mowing lawns, raking leaves, shoveling snow and painting fences.
But there are other ways to earn a few extra bucks.
Your child could serve as a computer tutor for
another child -- or even an adult or grandparent. Busy families in your
neighborhood might welcome a plant- or pet-sitter while they're out
of town. Other options include selling handmade greeting cards, cultivating
a garden and selling homegrown vegetables, or helping out at a garage
sale.
Jobs for teens. When kids are old enough to join
the workforce in earnest, they may need a little help getting started.
“With the job market so tough for teens this year, their first lesson
could be that it’s hard work to land a job,” Olson says. “That’s a valuable
lesson for anyone, and it’s best learned sooner than later.”
Here are some things parents can do to help their
teenager get started or continue in a fiscally responsible direction
(translation: get a job).
Find out what jobs are out there. Word of mouth
is one of the best ways of finding a job. Suggest talking to friends,
relatives, neighbors, teachers and counselors. Point out help wanted
signs in store windows, and news bulletin boards at libraries, community
centers and neighborhood businesses.
Determine interests. Encourage teens to apply
for jobs that fit their skills and interests. School or public libraries
offer a host of information about jobs -- what they demand and the kind
of training they require. Many have easy-to-use computer programs that
match skills with jobs.
IHateFinancialPlanning.com also has a "teens
only" section of its Web site designed to help them learn how to earn
and manage their money, from determining what kind of job they want,
to tips for successful interviews.
Help them balance their time. This is about earning
a little extra money. It's not about sacrificing every ounce of their
free time to obtain what they want. Help your child set up a schedule
that allows adequate time for school, for work and for play. Sometimes
kids over-commit themselves because they simply haven't yet learned
the art of juggling their time.
Lead by example. There's a lot more to work than
showing up. As a parent, model the work behaviors you'd like your child
to develop. Stress being on time, dressing neatly, being courteous to
others. When you come home from a rough day on the job, think about
what message you’re sending. Your child will learn a better work attitude
if you demonstrate how to handle day-to-day setbacks in stride.
Track performance. Just as your employer tracks
your performance on the job, set up a periodic review of your children's
ability to manage their money, whether it's through an allowance, a
part-time job or both. It's the perfect time to reinforce the positive
behaviors and inspire your child to continue them.
Consider a financial match. "Helping your child
learn financial responsibility isn't just about earning money. It's
about managing it as well," Olson says. Open a savings or investment
account for your child. Then offer to place a certain dollar amount
in it for every dollar earned, not unlike some 401(k) plans. You'll
not only encourage responsible investing, you'll also reinforce a concept
that's often foreign to kids of all ages -- delayed gratification.
For other tips on teaching kids about money,
visit www.ihatefinancialplanning.com.
Courtesy of ARA Content
