| Hi Taylor
- I just started giving my kids (8 and 10) a weekly allowance. I want
them to have the freedom to spend it as they choose, but I'd love
if they used the money wisely. Any tips for teaching/tricking them
into making good financial choices? - Dave
Hi Dave - The line between teaching and tricking gets blurred
at times, doesn't it? In some cases, you might have to get crafty
if you want to keep your kids from spending every dollar on candy.
That said, I find children can learn to appreciate money when you
offer some good context. Here are a few tactics that I've seen work.
Show how patience pays off. Grab a calendar and sit down
with your kids. Do the math to find out how long they would have
to wait to save enough up for a certain toy. When that's figured
out, it's just a matter of checking off days until the allowance
money has built up sufficiently. Most kids find a little excitement
in marking the calendar every evening in anticipation of an event
(like counting down for Christmas), and the whole process will
be a great illustration of the value of saving. Show firsthand
what it means to keep your money until you can get what you want,
and that lesson will hopefully stick with your kids for years
2. Teach them to plan ahead. If your kids don't have a savings
goal, they won't be inspired to spend wisely. Then, when something
comes along that they absolutely have to have, the money won't
be around with which to buy it. Explain the importance of keeping
their eyes on the prize, setting lofty goals and working hard
to get what they want.
3. Help them appreciate what they have. In addition to
reminding myself how lucky I am, I try to make sure my kids are
aware of their good fortune. If your children get an allowance,
they're pretty blessed, and it's important they understand that.
Granted, it can be very hard to make a child see how good life
is when something's just gone wrong, but money can actually provide
a good vehicle for explaining these concepts. If you can make
your children feel lucky to have any money at all, it's more likely
they'll hold onto it and treat it with respect. If you can get
that lesson taught early, your kids should be in great shape going
| Teaching your
kids about money can be very rewarding. There will be times when your
patience gets tested, but it's all worth it in the end. Best of luck!
© Taylor Kovar
May 26, 2020
More "Go Far With Kovar"
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.