finances

Raising Your Child to be Financially Mature | Part 5

2014-05-12T10:01:05+00:00

Teaching My Children to Save

We talked yesterday about allowing your children to practice decision making with their own money.  How do you allow them to fail while instilling positive habits?

 

With the teens in the residential program at Sheridan House every decision they make either has a reward or a consequence attached.  They begin to create positive habits because the rewards begin to act as an incentive.  During our summer program we teach them good money habits using fake Sheridan House money called Mazumas. There are many opportunities for the kids to spend their Mazumas all summer.  At the end of the summer we have an auction where the teens can spend their remaining Mazumas.  Those who saved Mazumas walk out of the auction with some awesome things.  It is a very black and white lesson for these kids on the value of saving.

How do we instill something like this in our homes?  We can make an incentive for saving.  One idea is to set aside two different times a year that you will match 50 percent or even penny for penny what your children save.  The first can be before Christmas so your child can actually spend his or her money on presents. The other can be before family vacation that way they will have spending money.  Get creative on how to reward your child for making positive financial decisions!

 

Listen to today’s podcast for more insight on training your children to save.

Raising Your Child to be Financially Mature | Part 5 2014-05-12T10:01:05+00:00

Raising Your Child to be Financially Mature | Part 4

2014-05-12T09:54:34+00:00

Allowing My Children to Experience Money Management

The third step in training your children for financial responsibility is experience.  They have to be allowed to practice as children with small amounts of money so that they can learn valuable lessons about money early.  Their first experiences in spending and saving should not be after they have gotten their first jobs.  If this is the case we have not set them up for success.

As parents this is one of the areas that we can step back and allow them to practice small financial decisions with their allowance.  We must be prepared, through this time of practice, for our own emotions.  When our child has spent all of their money and is looking to us to purchase something for them, we cannot give in to guilt.  We must allow them to make the choice and possibly make a poor choice in this area.  They will not learn the lesson, however, if we step in and rescue them.  There may be some painful moments for our child as they learn the value of saving and not spending all of their money immediately.  We have to let them learn these lessons as children and they must learn them before they are on their own making major financial decisions that can affect their future!!

 

Listen to today’s podcast for more insight on training your child for financial responsibility through experience.

Raising Your Child to be Financially Mature | Part 4 2014-05-12T09:54:34+00:00

Raising Your Child to be Financially Mature | Part 3

2014-05-12T09:56:08+00:00

Exposing My Children to Financial Realities

The second step to training your child for financial responsibility is exposure.   We must expose them early on to how money works so they can understand the process.

When children are young it is hard for them to grasp that things are not free because all of their needs are taken care of.  It is our job to expose them to the fact that it is an exchange, I want something so I must give something to get it.  An example of this for a child may be something like, if you eat your vegetables then you will get dessert.

As parents it is our job not only to expose them to the way money works but spend time communicating about it.  Help your child to process it.  The complexity of your conversations can grow with your child.  The older they get the more in-depth you can go in your teaching.  Before your child can practice with money they must have at least a basic knowledge of how the system works.  Spend the time not only exposing your child to how money works but also communicating with them about it.

 

Listen to today’s podcast for more insight on training your child for financial responsibility through exposing them to it!

Raising Your Child to be Financially Mature | Part 3 2014-05-12T09:56:08+00:00

Raising Your Child to be Financially Mature | Part 2

2014-05-12T09:45:07+00:00

Setting an Example with Finances

All areas of training begin with our example.  We must make the most of every opportunity, sometimes even going out of our way, to lead by example in the area of finances.

Remember that there are always little eyes watching how we do things.  This is such an overwhelming thing at times but if we are intentional it can be less so.  One of the areas we can create intentional moments is generosity.  Are we leading by example when it comes to being generous?  Ephesians 4:28 says “If you are a thief, stop stealing. Begin using your hands for honest work, and then give generously to others in need. “   It doesn’t say begin doing honest work and then spend every penny of it on yourself or save every little penny for a rainy day.  We are commanded to be generous.  We are not born with this innate attitude of generosity.  Because we are born selfish, we even have to teach our children to share their toys.    Look for opportunities to train in generosity!!

 

Listen to today’s podcast for more insight on training by example for financial responsibility.

Raising Your Child to be Financially Mature | Part 2 2014-05-12T09:45:07+00:00

Raising Your Child to be Financially Mature | Part 1

2014-05-12T10:02:53+00:00

Why is it important to train my child to handle money?   As an adult there are many areas that money can have a major impact; marriage and employment being two.  We have seen through many of the financial difficulties of today what can happen if our children grow up with out any training in this area.

As parents we need to process what our philosophy of parenting is on this issue. Are we going to overindulge our children, satisfying their every whim or are we going to focus on training for financial responsibility.   Training in this area will mean that there will be times that we have to say no.  In this overindulged culture, how do we refocus our children? It begins with an attitude shift.  We can start by helping to train our children to be grateful.  Being grateful for what we have can be a key point for financial maturity.  One way we can help our children see all that they have been given is by teaching them to serve those who are less fortunate.  There are many opportunities to do this as we have addressed in the past.  It can be as simple as giving a gift on Christmas to a family who doesn’t have as much.  Having your children get involved in cooking and delivering a meal to a family.  Many churches and ministries such as Sheridan House have opportunities for your family to get involved and serve in the lives of others.  Take advantage of these moment and talk to your children about all they have been given Remind them that no matter what our current circumstances there are always those less fortunate.

Listen to today’s podcast for more insight on why it is important to train your children to handle money.

Raising Your Child to be Financially Mature | Part 1 2014-05-12T10:02:53+00:00

Money and Your Marriage with Rosemary Barnes | Part 5

2013-10-25T13:44:39+00:00

Taking The Steps To Develop Financial Goals

As with many other areas this starts with a staff meeting. Discuss what you both want out of life; look at both the short term and long term. Next a monthly budget needs to be established. Make room for bills, tithe, savings and other monthly expenses. With in this a decision about credit cards needs to be made. Set aside time to discuss annual financial goals as well. For example, what bills to pay off by end of year, what necessary purchases by end of year and anticipated repairs by end of year. Always keep in mind that love means compromise, mutual submission to each other!

As always listen to today’s podcast for more on this topic.

Money and Your Marriage with Rosemary Barnes | Part 5 2013-10-25T13:44:39+00:00

Money and Your Marriage with Rosemary Barnes | Part 3

2013-10-23T19:41:20+00:00

Myths About Money- Part 1

One of the first myths that some hold to is the husband should be the one handling the money. Finances should be a team effort with the one who is more financial minded leading the way. Because we marry our opposites one of the two spouses will probably be more financially bent.
Another myth that some believe is “it’s my money I’ll do with it what I please”. They live dual income marriages. It is hard to be one flesh and may create tension and competitiveness if this is how money is handled. What happens if one spouse is out of work or decides to stay home with children? This is why finances should be “one flesh.” Check back tomorrow as we deal with more money myths in marriage.

Listen to today’s podcast for more on this topic.

Money and Your Marriage with Rosemary Barnes | Part 3 2013-10-23T19:41:20+00:00

Money and Your Marriage with Rosemary Barnes | Part 2

2013-10-22T20:03:55+00:00

Becoming One Flesh With Money

​Genesis 2 states, “and the two will become one flesh”. ​​Few things tare that joining flesh apart as much as the way we handle our finances. Because we probably come into marriage with such different approaches to finances, we must come up with a game plan. Like we stated in our series on setting goals in your marriage, it can begin with setting goals. If spouses can agree on and work towards financial goals it will be a step towards maintaining financial “one flesh”. This all begins with communication. It takes communication to work through financial goals and it takes continued communication as you work towards them. Take the time to evaluate where you are in the financial oneness process. Sit down with your spouse and work through areas that need to be improved on to bring you closer together.

Listen to today’s podcast on finances in marriage.

Money and Your Marriage with Rosemary Barnes | Part 2 2013-10-22T20:03:55+00:00