Page 82 - Workbook2E

#8
Teach Planning Your Spending in Advance
It can be very valuable to involve children in planning menus and shopping for food. Show them how to
use shopping lists, to estimate the cost of the meals before hand and how to use savings coupons. Educate
your children about the value of quality and on unit pricing. Effective planning and spending can be taught at an early age. As the twig is bent ... so grows the tree.
List a few ways you can teach your child the importance of planning your spending in advance.
Your Children Can Make Wise Spending Decisions
Healthy interdependence and self-sufficiency are learned by making choices—right or wrong choices. Children need to learn that when wrong choices with money are made, the money’s gone and a better choice is no longer possible. This helps them learn to plan ahead before making money decisions. If your children aren’t given the chance to make mistakes and right choices under your supervision, they won’t learn the down side of poor money management ... until it really counts!
Children can only make meaningful spending decisions if they’re using their own money. But children must not dictate how parents’ money is spent or be allowed to impose a lifestyle beyond their parents’ desire or income level.
Earn the Difference...
Parents may decide the amount of money budgeted for new shoes. If the child wants shoes costing more, then he can be allowed to pay the difference. The difference needs to be earned before the purchase is made. If allowed to buy the shoes before he earns the difference, you can charge interest on the loan. You can use these teaching moments to show how in the adult world, it costs you money to use other people’s money.
78 Workbook 2: Improve Your Financial Life