Although we may not like it, money is a very important aspect of living in today’s culture. But one of the most common education failures that I hear about is the lack of personal finance training.

As a matter of fact, a study by Experian in 2022 revealed that the average American consumer debt has increased to over $90,000. It is becoming increasingly more important to know how to earn, spend, and save money wisely. We have a great opportunity to teach the coming generations about fiscal responsibility!

As a child, I was given a small amount of money once I started helping with larger chores around the house. But it wasn’t just cash that my parents put into my hands to do whatever I wanted.

For example, when I wanted to buy a present for a sibling or friend, I would pull money from my gift fund. If I wanted to buy something for myself, I would pull from the recreation fund. Once I got older, I would begin using my clothing fund to buy new clothes when my old ones were wearing out. A tithe was given to the church, a percentage was dedicated to helping others, and some went into long-term savings. If I didn’t complete a chore, did a bad job, or complained while doing it, my “allowance” for that week would be reduced. I wouldn’t have as much money to give away or to keep.
This system taught me that it is better to save up so I don’t have to borrow when I want to purchase something. Not only that, I learned that there are many things worth spending money on other than just myself. Giving gifts, helping others, and even saving for future needs was actually exciting! We even had little boxes for each category that we decorated to match that fund: a little bank for the savings, a tiny church for tithe, etc. That was great visual reinforcement of the lesson and also made it a fun experience! I also learned that my work performance has consequences, both good and bad. I am sure my family was not the first to use these techniques, but the results are still influencing me years later.
Another thing we did was find a bank with children’s savings account options. When I got to the minimum age, my parents helped me open an account with the bank. Every once in a while, I would take the money from my savings fund and deposit it into the bank. Then we would get paper statements every month, and I could see the money grow over time. The bank even gave some interest for accounts with less than a certain balance. If you can find a bank that offers children’s accounts, I would highly recommend getting your kids involved in that, even if it is just a small amount of money. The principles they can learn will serve them forever!
The last example I want to provide sounds silly now, but it was a big deal for me at the time. When I was about 10 years old, I got into the habit of buying gumballs from the machine at the grocery store when I went with my mom. I would drop the quarter in, turn the little knob, and grab the gum from the dispenser tray. It was always so thrilling! Then for my birthday, my mom got me a pack of 12 gumballs from the candy section of the store. She got the whole pack for just a little over a dollar (I think it was $1.27 with tax). I was honestly a little angry at the store for cheating me so many times by charging a quarter when I could have gotten it for less than half the price!
My mom took the opportunity to explain the way pricing works. To me, a gumball from the machine was worth 25 cents, so I was fine paying that initially. But once I found out I could get them for cheaper, a quarter suddenly seemed overpriced. The experience wasn’t as appealing as before. Now that I am shopping on my own, I often ask myself if there is a less expensive option or if a product is even worth the money it would take to purchase. I still make some impulse purchases, but it is a more calculated impulse within parameters I have set beforehand.
These are just a few examples highlighting some ways to teach your kids about money. I would not trade these experiences for anything! I encourage you to make financial education a priority. There are so many ways to intentionally teach the next generation of money earners, spenders, and savers.

MEET OUR AUTHOR

JOSEPH WUNROW

Joseph Wunrow is a Communications and Engagement Manager at HomeLife Academy. He was homeschooled with HLA throughout grade and high school and is thrilled to be serving other homeschooling families now.