[How to] Teach Your Kids about Personal Finance

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I wrote the blog posts below a few years ago. Remember, do what you believe is best for YOUR family. No comparisons or competition either. Do what you can and ask God to do what you are unable to. Let me know how you teach your children about personal finance.

Blog Post 1:
I pay my kids a stipend to go to school and perform. My children are 13, 11 and 5 and in the 8th, 6th and Kindergarten. I started paying them a year ago after my Director mentioned that he paid his kids. I was intrigued and asked him to explain. He asked me if I was paid to clean my home and of course I said no. So he said why should the kids be compensated for it. True! He told me to use my own method.

I thought of a system that would work for me since I was a single/divorced mom of 3 and not receiving child support. I went with paying them $10 per grade level. A's=100% B's=50% for instance, my 8th grader can earn $80 per month. She has six classes so each A's=$13.33 and B's= $6.67 I do not pay for C's or lower because in life we don't get paid for below average work. Well, let me tell you, this method works! They work so hard and they love the idea of getting paid and having a budget. They still perform all of their chores and have a free day on Saturday's and Sunday's when I take their chores. Remember, we don't get paid to do clean. I stress that we're a team! My Kindergartner? He gets $1 per month and he's happy too! Especially when the Ice Cream Truck comes along.

I allow them to spend the money however they want after their tithe. I have found that they have done extremely well with their money. In fact, my oldest daughter started a candy business at school and now has recurring income. They use it to pay for field trips, movies and "extras" that they want. I really enjoy watching them save and spend.

Blog Post 2:
As you may know, I do believe in giving children a stipend to go to school. Yes, I pay mychildren for their performance. Recently I learned about the Paypal Student account and immediately signed up my 14 year old daughter. What an excellent way to help her save some, spend some and give some (that's our money mantra!) Plus, I do like the idea of making sure that she is staying within her spending plan from her school stipend and her clothing stipend. I no longer purchase clothes, shoes, get hair done, razors, etc. Anything that she or her younger sister wants is now their full responsibility. Doing this has taught them how to shop for sales, splurge when they want and to pay close attention to where their money goes. The children and I take our conscious spending plan SERIOUSLY.

Modeling is the best example because whatever you are telling your money to do (or whatever it is telling you) is what your children will model. Teach financial freedom! Oh and sign your kids (13 years and older) up for the Paypal Teen DEBIT Mastercard here. https://student.paypal.com/

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[Msfly39]

I think this is great. I personally, just started paying my 7yr old, not for chores but as an incentive to read more. He's currently in the 2nd grade and they sugguest the students read at least 15min a day Mon - Thurs. My incentive is $1 for every additional 30 mins or more he reads. He really enjoys the incentive. He even reads on Fridays and some weekends. He has already read over 300,000 words in the first quarter in school, more than the entire 2nd grade at his school. :)

[SPARKWISDOM]

@Msfly39 WOW! He rocks! Reading is FUNdamental! If someone paid me I'd be a multi-millionaire! LOL!

[TheGrannys2]

Great video It would be so nice if more people were into this so our children won't have to deal with the many struggles most people are having today. Thanks for sharing. I am currently teaching my niece and nephew to create their own products to sell, to tithe the money, put back into the business/community,and save the rest. They are really into it (13 and 9 yrs old respectively). We are also currently working on trademarking a name for the business.

Granny

[SPARKWISDOM]

@TheGrannys2 I SO agree! We have to teach our children the importance of finances. Money is a tool and when used the right way, it will grow!

[oulove935]

Again I say, YOU ARE AWESOME!!! Lera is definitely your mini-me. Wish more parents were like you, teaching kids the fundamentals of this dog-eat-dog world. THIS is was the black community NEEDS, because you and you seed are an example of how to be prosperous the RIGHT way, though some folks would consider you a "sell-out", smh. Keep on being the blessing that you are to sooo many of us.

[SPARKWISDOM]

@oulove935 LOL! She definitely IS my mini-me. She really is a great child and I just adore her. Thank you for the words of encouragement!

[BEAUTIFULDREAMANGEL]

I am glad I found this video because I want to incorporate this system of financial earning and responsiblility with my children. I agree that modeling is the best method of teaching to your children how to handle money. We have all heard that money comes and goes but it can be flipped around to money comes and grows.

[TheMSEnthusiast]

What do you sell on Ebay? This is very inspiring.

[jopurchase]

Excellent excellent video. My husband and I do not have children yet but I'm always conscious of how we will teach them about monetary responsibility because we both didn't have those lessons growing up. Definitely a valuable video. Thank you.

[BuySellRentInvest]

@SPARKWISDOM I am a Granny and did not teach my children how to handle money nor was I a role model. Now my grandchildren are 15, 17, and 19. Is it too late? Their mother doesn't know how to handle money either. Would love some advice! Thank you,

[latrece36]

Love this will be adding this to my childrens financial plan

[Greatersend]

I remember when I was 12 decades ago my mother taught me the lessons on opening and maintaining a savings account. In addition, she taught me how to stretch my monthly allowance (during that time it was $5 a month) and to save the extra change in a jar. Now as an adult, I'm a frugal shopper who saves every penny. Otherwise, you're doing right by teaching her to be financially independent.

[kimstrau]

I also, pay my children for their grades. But my husband came up with the idea of paying them for every paper that comes home with 100%, he would give them a dollar. It was a great motivate tool for them.

[iamaksd]

Like your daughter's coat.

I don't blame you young lady this is great that you want your own business. :)

[downinmn]

I love this! I've been debating this issue & I'm going to implement this into our home. Thank you for putting this out there!