Financial plaNning
Teaching Your Kids the Value of Money
CBN.com
– Every parent wants his or her children to be wise in handling money. As in other areas of life, we hope to equip them so they will not repeat the costly mistakes we may have made in years gone by.
Here is the strategy my wife, Susie, and I applied when training our three sons about the handling of money. They weren't original with us; like a lot of young parents, we sought the counsel of others whose experiences seemed to validate these principles.
Allowances
Contrary to the most common advice concerning allowances (give them as a reward for completing assigned chores), we gave allowances unconditionally. They received allowances because they were part of our family and the allowance was part of our provision for them. We used allowances to teach the boys about God's grace and faithfulness. They didn't earn them or deserve them; they received them because their parents lovingly chose to provide them. Nothing they could do would result in their allowance being reduced or taken away.
Tithing
The first tenth of their allowances and other income went into the "Lord's bank," and we helped them decide where to best invest it for Him. In addition to our church, they were also encouraged to support parachurch missions. We had a globe of the earth, and pins were stuck in all the places where our family had given to the work over the years. We wanted them to see their giving as an exciting opportunity for our family to team up with others and help change the world!
Chores
The work we assigned to them was given on the basis that we're a family, and in a family, everyone has to help pull part of the load. We helped them see that cleaning and maintenance was part of the cost of having a nice house, nice clothes, and so on. Over the years, they each did their share of house cleaning, folding laundry, vacuuming, lawn mowing, and leaf raking, but they were not paid for any of these chores. Helping out was simply expected of them as family members. To earn additional money, they took on additional non-household related jobs.
Saving
When they were young, we helped them open their own bank accounts. To encourage savings, we had a matching arrangement where for every $1 in interest they earned, we added $2 (which was gradually phased out as they got older). We also let them know that, unlike many of their friends, their first cars would be "used" and relatively inexpensive, because it was primarily their responsibility to save and help pay for them. While we (along with their grandmother) would contribute generously, the amount they would ultimately have available would depend on their own planning and initiative.
Now that they're grown and married, I can report that these principles worked. Each of my three sons has a strong work ethic, is faithful in giving to the Lord, and is averse to debt, and none are unhealthily focused on earning high incomes. They have reached their full emergency funds savings, allowing them to focus more on saving for their retirement and planning for their children’s college expenses. Their mother and I are proud of their ability to keep money and possessions in an eternal perspective.
Sound Mind Investing exists to help individuals understand and apply biblically-based principles for making spending and investing decisions in order that their future financial security would be strengthened, and their giving to worldwide missionary efforts for the cause of Christ would accelerate. In other words, we want to help you have more so that you can give more.
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