How to Teach Money Management
What are some wise ways to manage our money? And how can we teach our kids to be wise with money? Jacob shares his insights from life experience how we can share these important principles with the next generation.
He who is faithful in a very little thing is also faithful in much; and he who is unrighteous in a very little thing is unrighteous also in much. Luke 16:10
Reality is…money makes world societies go round in so many ways. We can allow our financial concerns to drown us or we can take charge of them. There are endless tools, resources, and materials available to help us be wise in our money management. Check out these quick tips:
- Get out of debt…and stay out – It wasn’t long ago that I got married and carried into my marriage a significant sum of financial debt from school only to add to that a car payment my wife carried in. The first year of our marriage we decided that we would live debt free. Within a year, we were out of debt and have vowed to never go back! You should do the same! In Christian circles (and now outside these circles), Dave Ramsey’s Total Money Makeover is one of the leading resources on how to be wise with our money. I highly recommend this resource!
- Budget…and stick to it – It wasn’t until I got married that I began to use a budget (insane…I know). One of the wisest things I’ve done financially is to create a budget and stick to it. There are multiple resources for this. I highly recommend the software YNAB (You Need a Budget). Their philosophy and software is great and they have a ton of resources, including classes you can take online for free. Never stop learning when it comes to budgeting! You can always learn more.
- Pass it along – A fun way to pass along the importance of making wise financial decisions to your children is by helping them with things that they will already want to do. For example, the neighborhood lemonade stand. If your child wants to have a lemonade stand, be intentional about walking them through the costs associated with having the stand. Lemonade mix, water, cups, and time spent aren’t free in the “real world.” Help them know how to set the price of each cup so that their experience is profitable. Another great resource for you as a parent in passing financial wisdom to your children is Dave Ramsey’s book Smart Money, Smart Kids.
God calls us to be good stewards of His blessings. As parents, we are called to manage our resources well…including our children. Let’s take time this week to bring our kids into the conversation about being wise with money.
How can you be wise with the money you have? Are there things you want to start saving for? If you were to buy a car, how would you go about paying for it – cash or car payment? What are some ways you can be wise with your money now that will benefit you in the future?