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Renee Swope

Encouraging and equipping moms to parent with God's grace and confidence.

Teaching Our Kids Financial Truths

Did you know that Jesus talked about money as much as He talked about eternity? As we look for ways to help our kids connect everyday life to spiritual truths, I think it’s really important to talk to them and teach them God’s perspective of money. Today, I’ve invited my friend, Marybeth Whalen, who is also a P31 speaker, fellow blogger, mom of six, and author of “Learning to Live Financially Free”, to share with us some important financial truths we can teach our kids.

 

“Money doesn’t grow on trees.”

 

“You should save for a rainy day.”

 

“Waste not, want not.”

 

We all grew up hearing these little sayings as children, but did any of us really know what they meant? I know I didn’t enter marriage with much practical wisdom about managing money, so I went to the world for answers.This is what I heard:

 

“Buy now, pay later.”

 

“90 days same as cash.”

 

“No interest until you’re too old to care anymore!”

 

And for a young, broke married couple, all of this sounded pretty good. In hindsight, I wish my husband and I had been more prepared for life from a financial standpoint.Since we weren’t, we have determined that we will do our level best to prepare our own children.Here are some principles we have discovered that are important to consistently teach our children:

 

Debt is not “normal” or healthy. The culture will tell your kids otherwise, reasoning that to carry a credit card balance and car loan, not to mention a mortgage, is normal. They will go even further in telling your kids that to have a healthy credit score, you must carry some debt—as long as you pay on time. You can go a long way towards countering that by teaching otherwise within your home. Let your kids see you save for things you want instead of financing them. Explain why you turned down that store credit card at the register—even though the cashier made it sound like they would save you money. Begin to discuss what interest is, and how much actual money is spent on interest. If you have made mistakes in this area, share that with them so that they will see the dangers of debt.

Tithing is essential. I have a friend who always tells her kids, “God honors those who honor Him.” While I am not preaching a prosperity doctrine here, I do think that kids need to understand the importance of tithing from an early age. The earlier a habit is started, the more natural it becomes. Require them to tithe ten percent of any allowance, babysitting money, etc. to your church. Divide their allowance money up right in front of them. Consider starting an envelope system with them, with an envelope for saving, spending and tithing.

Delayed gratification builds character. In our flesh we want it and we want it now! And yet, we know that waiting and growing through that process is more often how God works in our lives. This is certainly true of finances. You do your child a disservice if you don’t teach them to wait, as this is a necessary life skill that they will have to learn at some point. Better to learn this in the protection and nurture of your home. Purchasing something that has been anticipated and savored is a shining moment in a child’s life—with much more benefit attached to that item in the end, I can assure you! The next time your child tells you they want something now, ask them how much money they have, and help them ponder how much they will need to save. Help them think of some extra chores they can do to raise the money, then give them a goal to work towards, and help them plan how to reach their goal. Most times, they will either forget about the item (showing you it would have been a waste of your hard-earned money) or have a character-building experience. While it might take a bit more time on your part, the life lesson they learn is worth it.

Eating out and other forms of entertainment (movies, etc.) are special treats, not a lifestyle. I have noticed a certain level of expectation among children, especially in the areas of eating out and being entertained, to the tune of high costs and little appreciation. Through my husband’s financial counseling, he has determined that one of the number one budget busters for families is eating out and entertainment. We as parents have learned to reward ourselves in this way, reasoning that we “deserve it.” And our kids have picked up on that. A shift in perspective for the entire family can save money and provide a more realistic attitude. Examine your family’s attitude and budget in this area, and see if there are changes you need to make. Make going out to eat a treat instead of the norm, rent movies (they come out so soon after they are released now you hardly have to wait anymore!) and have a family movie night complete with popcorn and sleeping bags on the floor, or ask the kids if they would like to spend their own money to go out. We have started doing this with our kids and it is amazing how quickly they decide they don’t want to eat out!


Marybeth, this is great stuff! I can’t wait to read your book and give away a copy today. If you have questions for Marybeth or something you’d like to share based on what she gave us to ponder today, please post your comment here and then hop over to her blog to win some aqua juice!

 

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Today’s Mom Give-Aways

We’re giving away a copy of Marybeth’s book, “Learning to Live Financially Free” and “Total Money Make-Over” by Dave Ramsey.

To be part of these give-aways, click on “comments” below. PLEASE include your email so we can get in touch if you win. Also, I’d love to know the age of your kids and where you are from.

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Comments

  1. What a good topic! I wish my husband and I would have learned this when we were growing up. This would have saved us when we got married. However, we are doing "right" by our kids and teaching them better. Our kids are 16, 14 & 12.

  2. We have always tried to teach our sons (15 & 11) financial responsibility, especially since it was such a hard lesson for us to learn after we got married. My oldest is saving for a car while my youngest is saving for a trip he wants to take with a friend this summer. With faith and obedience, they will meet their goals while learning a very important lesson. Thanks for your messages – they are always such an encouragement.

  3. Thank you for timely financial advice. It helps me reflect on what “financial personality” I’ve inherited from my family: vacillating from being extremely frugal (ie.living without a phone for part of graduate school) like my mother or spending on impulse like my father (especially for books and “healthy” groceries). My husband comes from a much more even-keeled, frugal background and we need to balance out our unique tendencies/differences. Thanks for the Dave Ramsey recommendation.

    [email protected]
    Metamora, IL

  4. This is such great information that I wish I had been taught before my college years! My husband and I are working hard to get out from under large student loan debts. We’re trying to teach our girls to be good stewards of their money now so they don’t make the same mistakes we did.

    Oklahoma
    3 girls – 9, 5, and 3
    [email protected]

  5. What a timely post in these uncertain financial times. We have some financial “things” we are dealing with…need I say more? and Marybeths’ book would be such a blessing.

    Thank you for these amazing posts. God is using them!

    Blessings,

    Caroline
    [email protected]

  6. I have two daughters – 19 and 16 years old. We have tried teaching them the value of saving, etc. but my 19 year old has gotten herself into debt already. I am realizing only now that I didn’t fully understand the biblical perspective on how to handle your finances and failed in passing that along to my daughters. I have not read any of Dave Ramsey’s books but see so many recommendations here that I think I may pick up one. And I love Marybeth so I know her book is going to be great!
    Thanks for the chance to win one of them.

    Kim
    NW Indiana (near Chicago)

    Would love to know if She Speaks conferences or any of the Proverbs 31 Speakers will be coming to the Chicago area!

  7. These lessons are not only good for the kids but also for the adults. I look forward to sharing this book with my 2 DD (22 & 18). Even if I don't win a copy, I was planning on purchasing one when available.

    Thanks so much for all you do.

    Kim in Snowy Ohio
    [email protected]

  8. Marybeth’s book looks great and I’m a Dave Ramsey fan, too. We can all take a closer look at how we spend the resources God gives us. Thanks for the reminder.
    Michele
    Mom to Carly, age 4
    Charlotte, NC

  9. I am excited to hear from Mary Beth on this topic – I can’t wait to read her book. Dave Ramsey talks about changing your family tree, and my husband and I are actively trying to do that. Our parents didn’t know/teach us those foundational things and we have had to learn them as adults. I pray that our kids will learn some of these truths without creating messes first.

  10. I want to learn more about this! My parents always taught us to split our allowance between saving, spending, and the church, but we didn’t tithe, exactly. My kids don’t get an allowance or anything like that yet, but I want to make sure that we have a plan before it begins, and it probably won’t be long. Thanks for sharing!

    Amy
    Roxboro, NC
    [email protected]

  11. Thank you for this post. This will be helpful as we teach our son Harrison (age 2) about financial truths. It was helpful to me as well!

    [email protected]

    We live in Simpsonville SC

  12. I have a 3-year-old daughter and a son on the way in June. My husband and I are trying to get out of debt and to be good stewards of all that God has blessed us with, and I definitely want to pass that on to my children.

    [email protected]

  13. I’m reminded of the saying that we need to cut our coat according to our cloth and only buy what we actually have money to pay for at any given time. We need to be wise stewards of the money God has entrusted to us – whether it be much or little.

    Marybeth shares wonderful wisdom and insight here. Great encouragement and very practical.

    Reminding myself everything I have is His,
    Joy

  16. My husband and I were not finacially prepared by either of our parents. It was a very hard lesson to learn. I too find this to be an important issue for us to teach or boys. From their allowance, I have a spend, save and share. From the save portion they buy gifts for each other on birthdays and Christmas (no more than $20) and the rest is for spending for a vaction, etc. The share portion is what is tithed. It is such an important piece of life that I believe maybe even should be taught early in school. Thank you for another great post.

    [email protected]

  17. My husband and I have been on the Dave Ramsey plan for a little over a year now. I highly recommend his books. Our kids use the Financial Peace Jr. envelope system. Thanks for devoting time to parenting, Renee.

    Stephenie
    Ohio
    [email protected]
    Abby – 8
    Matt – 7

  18. Thank you for this great information. I have been so blessed and challenged by your “encouragement for moms” series. Thank you for entering me in the giveaway!

    valerie
    Lubbock, TX
    [email protected]
    8 y.o. daughter
    6 y.o. son