The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.
Have you ever stopped and really studied kids today? The typical kid demands money from his parents, avoids you because he is playing an important video game, and ignores all advice because he assumes you are old and know nothing. Kids today are brats. There is simply no sugar-coating it.
So, how can you keep your kids from becoming rich brats?
Do you have young children and are afraid that they will become ungrateful and disrespectful like the rest of today’s children? If you do nothing, then this fear will likely come true, but if you are intentional, your children could grow up to be resourceful, generous, and wise stewards of their money.
Step One: Start when they are young
The key to raising children is to start good habits when they are young. Instead of doing everything for them until the age of 10 and then suddenly imparting chores on them, teach them how to pick up their toys soon after they turn one. At this point, they might only be able to pick up one toy and put it away, but you must praise them for this and encourage them to pick up a greater ratio of their toys with each passing month. By the age of three, they should really understand how to clean up and play nicely with their things.
As you instruct them how to pick up after themselves early, you must also teach them about money at an early age. Now, obviously they won’t be able to balance the checkbook while they are still in diapers, but kids are learning about money every day whether you teach them or not. They see you at the store when you buy groceries and they notice your payment at the cash register. In order to give your children a better understanding of money early, I would encourage you to use cash instead of credit cards. Kids understand money, but credit card payments are a little more difficult to grasp.
Now that your kids understand the value of responsibility and the importance of money, begin combining the two. When your children are able, give them certain chores that merit a payment – something like drying the dishes or setting the table. Pay them immediately for their hard work so that they understand what they are being paid for.
Step Two: Show them what their money can buy
When your kids begin earning money, they will likely want to go out and buy some things. At this point, they might have only saved up $5, and they really want to buy a brand new video game (which costs $60). As hard as it may be, take them to the mall with you and bring them into the store. Show them the cost of the video game they want and let them know that the video game simply costs too much for them to buy. If there are discounted games in a bin, bring them over to it and show them what their money can afford to buy. If they do not want any of these games, then teach them their two options: (1) wait and save up the money for the new game, or (2) purchase only what they can afford at the moment.
By allowing your kids to earn money through chores and by not giving into their wants (by simply buying the game for them), your kids will certainly not turn into rich spoiled brats. Instead, they will turn into hard working young adults. If your kid really values that video game enough, he will go back home and immediately come up with a list of things he can do to earn more money. Then, once he works hard enough and finally has the funds to purchase the game, either of two things will happen: (1) he will decide not to buy the game because he has worked too hard to spend his money on something so frivolous, or (2) he will purchase the game and take excellent care of it! No longer will he leave that game out on the floor or kick it around in anger. He will carefully place it back in the box, put it on its appropriate shelf, and make it last forever.
How about you all? Do you have any more advice on how to keep your kids from becoming rich brats?
Share your experiences by commenting below!Â
***Photo courtesy of https://www.flickr.com/photos/stevegatto/362852690/in/
