Parenting

Money Talk: The 10Best Things You Can Say to Your Children about Money Thomas Haller and Chick Moorman www.personalpowerpress.com Many parents do not know how, do not want to, or lack the communicationskills necessary to talk to their children about money in general. Sowhen a money crisis develops, the potential to pass fearful andnegative attitudes towards money to the next generation increases. How effective are you at talking about money? What words do you usewhen you talk about money in front of or directly to your children?Below you will find a list of the ten best things you can say to yourchildren about money. Use it to gage your money talk skill level. 10 Best "It's allowance time. Everybody get your envelopes!" Oneof themain reasons for having allowances is to teach children aboutbudgeting. The envelope system will help you do that. Children areconcrete thinkers. That means if it is not in their hands, it is not intheir minds. Envelopes will help you make the teaching of budgeting aconcrete process. Label envelopes with several budget areas, includingsavings, investment, charity, and spending. Children can divide theirown allowance by placing the amount of money they choose in theappropriate envelopes. "I'm willing to pay part of it." This phrase is usefulwhen yourchild wants something that exceeds the budgeted amount you hadearmarked in your budget. If you had $80 set aside for sneakers andthey want a pair that costs over $100, this sentence defines yourlimit. It also invites the child to take responsibility for coming upwith the difference. It curbs feelings of entitlement and allowschildren to take ownership for achieving their desires. In addition, ifsome of their money is invested in the article, they are more likely totake care of it. "Did you bring any of your money?" This money talkquestion ishelpful for those situations where children ask impulsively for thingswhile you are shopping. It helps them to see that they need to haveforethought in the money purchases they make. "The car needs to be washed. What do you think that's worth?"Thepurpose of a child's allowance is so they can learn how to spend, save,and use money. If they want or feel they need more money than theallowance provides, there are additional ways to get it. Doing out ofthe ordinary jobs around the house, over and above their normal chores,is one way for them to earn additional income. This will help theminternalize the concept that if they want more they can work more. "Help me figure out the tip." This type of money talkhelpschildren in several ways. In addition to providing a real life exampleto use basic math skills, it also gives children the awareness of thecost of the meal so they can appreciate what is being provided forthem. Learning about tipping also gives children the message that beingappreciative for the service provided is expressed in the form of atip. "Oh, I think you gave me the wrong change." Allow yourchildrento overhear you telling cashiers or waiters when the change isincorrect. If you were short changed it models sticking up foryourself. If you received too much change, your words demonstratehonesty and communicate integrity around money. "Our charity jar is almost full. What should we do with themoneythis time?" Teach the charity habit by contributing to a charityjarregularly at allowance time. Set a goal as a family as to how much youwant to accumulate during a specific time frame. Watch as the jar fillsup with the individual family contributions. Decide together where todonate the money. Give your children opportunities to have input onthis important decision. "Wow! I found a quarter. The money just keeps on coming."Money comes to us in a variety of ways and inunexpected times and places. Finding a coin on the ground is a signthat the universe is continually active in providing money for thosewho are open to receiving it. Stay open and allow the AttractionPrinciple to bring you money even in the smallest of ways. It is a signthat more it is on the way. Appreciate what you receive verbally sothat your children can hear your gratefulness. "Bummer. Sounds like you have a money problem. What can you doabout it?" This piece ofmoney talk communicates to children that the current money problem theyface is their problem. It informs them you will be the supportivelistener, but not a rescuer. With this style of language, you alsoremind yourself that there are times when allowing children toexperience the consequences of their actions and choices is the bestway for them to learn. "You don't have to wait until you're a grown-up." Childrencan makemoney, own a business, save money, invest in the stock market, and giveto charities. Money is not just for adults. It is for anyone who hasparents that are willing to help their children become financiallyliterate. Chick Moorman and Thomas Haller are the authors of The 10Commitments:Parenting with Purpose . They are two of the world's foremostauthorities on raising responsible, caring, confident children. Theypublish a free monthly e-zine for parents. To sign up for it or toobtain more information about how they can help you or your group meetyour parenting needs, visit their website today: www.personalpowerpress.com .Permission granted for useon DrLaura.com.