For this post, I have a guest post-er. Please welcome K, my husband (because I'm not very smart with money). He's the money person at this house. He will be telling us all about how his parents raised him to be money smart...Here he is:
When Julie mentioned this topic for what my parents did for me, two things popped into my head - example and practice.
In regards to example, I doubt this was intentional on the part of my parents, but all kids watch their parents and learn from their actions. I didn't see what my parents' income and savings looked like, but I did see their spending. I remember discussions about going out to eat or going home to eat and other discussions relating to decisions that affect how money was spent. Of course, we went out to eat sometimes and stayed home to eat sometimes, but I saw the process my parents went through in making some decisions including the part that money plays in those decisions.
For practice, this was very intentional by my parents. Somewhere around 2nd or 3rd grade, I got a checking account and a $30/month allowance. With these items came the responsibility to purchase my school lunches which the $30/month covered with a little to spare. Sometime around age 14 or 15 I got a $100/month allowance and a credit card. With this allowance came the responsibility to cover almost all of my expenses (car gas & insurance, clothing, still school lunches, etc.) except for food and lodging. With this practice, I was able to learn to manage money (make sure I didn't spend my allowance before I had to buy things like my school lunch) and I got experience using a checking account and credit cards. In addition, I got practice giving 10% of my income to church in the form of a tithe. All of this practice occurred at a young age when the stakes aren't that high. Now that I'm managing my income of more than $100/month, the things that I've been doing since a young age seem pretty simple even though the dollars are bigger, and I'm able to learn about more exciting things (like investing) instead of learning the basics I did when I was younger.
Hi me again... Well, there you have it. How to help your kids get a smart start with money.