Mark and I have always believed that teaching our kids money management strategies needs to be a priority.
When they were small, we gave them one dollar a week for allowance…in dimes. Then we had them manage their money with the 10-10-80 principle. 10% to God, 10% to savings, and 80% to spend. It was an oversimplified way to lay the foundation of good money management principles.
Over the years, we developed a system to assist them manage their money in their teen years. In an effort to encourage them to budget money for known expenses and needs, we created a “paycheck worksheet” that they use to manage each paycheck. For more resources, check out my book Got Teens?: Time-Tested Answers for Moms of Teens and Tweens.
As they grow older, we encourage them to learn the difference between “tithes” and “offerings.” A tithe is 10% of our income that we give back to God every time we are paid. Mark and I automatically tithe on every paycheck with online bill pay directly to our church. Technology has helped make that possible.
An offering is a gift given back to God over and above a tithe. We support a Compassion child. That’s an offering. We also support several missionaries. Those are offerings.
As our teens grow older, we encourage them to find “offering” opportunities, too. There are “special offerings” at church to participate in and opportunities to give at church camp each summer.
What about you? What strategies do you use to teach your kids important money management skills?
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Your strategies sound much like ours–though mine are not old enough yet to need the planning worksheet. Thanks for sharing! The linky isn’t up. I don’t know if I will have time to return to the blog later in the day. Here’s my post.
Arrrgghh. Technology =). Your linky isn’t up and my post didn’t show up. Here’s the link.
Laura, I’m sorry. I preposted the linky but it doesn’t show up for some reason when I do that. I have to get up first thing in the morning and post the linky again! Frustrating on my end too!
Very important topic, and some very good advice, Jill. I was mostly left alone to learn about finances as a child. That’s didn’t bode well for me in my early adult years. Teaching children about money early on is not only going to help them greatly as an adult, but it’s also biblical, in my opinion. Part of “train up a child in the way he should go”. Thanks, Jill.
My parents did 10-10-80 with us, and when our kids are old enough to understand all of that (next couple of years) I know we will implement that as well. Great topic!
I love the idea of using a dollar in dimes… definitely think we might try that!