My husband and I differ in opinion on many issues from our taste in music to our stance on politics. However, one subject we always agree on is finances, including teaching our children the importance of money management at a young age. Because my parents encouraged me to save money and facilitated the opening of a savings account, my husband and I were able to very quickly move from renting to home ownership shortly after we were married. While many of our peers were building credit debt, we were paying off student loans in full and beginning to save for our children’s educations. Had my parents not imparted their knowledge of financial responsibility to me, our lives would be very different today.
So when is the right time to talk to kids about money management?
We began as many parents do – with the purchase of piggy banks. Our children learned initially that they could either spend the money they received – for their birthday, Christmas, earned by completing a task around the house – or they could save it. At the most basic level we taught them about instant and delayed gratification, and as they’ve gotten older we’ve helped them understand the power of saving that money until it has grown over time, thus allowing them to make a bigger purchase. Recently we’ve begun talking to them about the importance of diversification, or as they understand it, putting money in different places to give that money the best chance to grow. Even though we’ve laid this foundation, we know that there is so much more to teach them, and helping to raise financially responsible children is something my husband and I feel very passionately about.
I am happy to announce that I am going to be partnering with Kidworth over the coming months to bring Resourceful Mommy readers information about this very important topic. Kidworth is a free service for parents to help teach children money management that will last a lifetime. Their service allows parents to set up accounts for their children, create goals each child is working towards, and invite family and friends to help via emails, social sharing and invites.
The fact is that kids get an average of $25,000 in gifts and cash from birth to the age of 18. Yet most kids have a net worth of zero when they leave home. That money that I saved as a child and teenager turned into a down payment on my first home at the age of twenty-four. I hope to give that same gift to my kids, and Kidworth is designed to make that happen. I hope you’ll join me as I write more about teaching children the importance of money management, especially during the holiday season!
This post was written in conjunction with a paid opportunity from Kidworth. All opinions are my own, and as always, I have chosen this opportunity carefully with my readers in mind.