Your Kids and Money Pt 1 by Kia

Written By: D. James Rice on February 8, 2010 5 Comments

Kids and money two of my favorite things even though I don’t have enough of either. So, when should you start teaching your kids about money? Hopefully not the same way people do with sex, when they’re already pregnant or in this case when they have a mound debt. Teach your kids about money and sex as soon as they start asking about it; If not you then who? If you haven’t read my previous blogs I am a Financial Services Professional, I’m not an expert or all knowing, but I have a lot of knowledge about a few things and will learn the rest on the way. If you have ever read anything about Michelle Singletary (which I highly recommend) she always talks about Big Mama nurturing her financial knowledge, well my Big Mama is my mom.

The 1^st time your child asks you for money is when the education begins. If they are 5 years old going to kindergarten and want to buy a snack in school you can give them an allowance. Tell them I will give you $5 so you can buy a snack everyday this week, if you spend it all on Monday you won’t get another $5 until the next Monday, and make sure you stick to it. This will teach them one, how to budget their money and two, when mom says something she means it. Hopefully you still keep a check book and don’t depend on online banking. I started writing checks as soon as I could write in cursive. My mom would let me write her offering check for church while she was ushering. I had to write the check, record it in the register and subtract it from the balance. This will allow you to check their math skills and handwriting. This lets the child know money doesn’t grow on trees because they see the balance decrease every time they write a check.

Now I can hear people saying, I don’t want my kids all up in my money like that! Well if you don’t teach them when they’re young you will be spending a lot more when they get older. My love for Financial Planning started when I was about 8 and my mother took me to see the “money man” as I called him at the time. They were talking about her life insurance, 403(b) plan and other investments she had. She always told my brother and I as children, if something happens to me, cry for a minute, go to the ATM on the way home from the hospital before the bank freezes my accounts and then call the “money man” because he could get the process started on getting the Life Insurance done. Now all of this requires a lot of trust in your children, because they have to know all the intimate details of your financial life, Social Security number, PIN number and what bank. And if you start when they are young you will develop this trust and you won’t have to worry about them stealing your identity or money because money is an open conversation and they will know they can come to you.

Before they go off to college teach them about credit cards and the dangers, their campus will be flooded with people giving them a free t-shirt for filling out an application. If you do have to use financial aid make sure they are using the money for school expenses and not waiting for the extra cash to go shopping with. Yes parents that’s what they do with the extra money and if you knew that already you probably did it yourself or know someone who did. Now please don’t think that with all this information they’re going to DO what you’ve taught them, but it is YOUR responsibility to be their 1^st teachers.

My love was solidified when I walked across the stage of Morgan State University on Sunday, May 17, 1998 with a BS in Accounting, DEBT FREE with a little left over for a down payment on my 1^st car!!!! Not because I got scholarships, because I was really a C student until I got my MBA, but because my mother saved for me! My mother was a teacher, then a principal so she didn’t make a ton of money, but she took the slow and steady theory of investing for my brother and I since about birth. Now don’t get discouraged if you haven’t started just yet, it will just take a little bit more discipline. And as soon as I become a Certified College Planning Specialist I will be able to tell you how it’s done.

Thanks for reading

DJR and Kia

5 Responses to “Your Kids and Money Pt 1 by Kia”

Allen Taylor says on: 8 February 2010 at 11:45 pm

Nice writing. You are on my RSS reader now so I can read more from you down the road.

Allen Taylor
D. James Rice says on: 9 February 2010 at 1:26 am

Kia, this is an amazing post. This is something ALL parents should read. Every time you write it makes me look forward to your next blog because they get better and better. Thanks for writing
Kia says on: 9 February 2010 at 9:45 am

Thanks Devon! I started teaching my Junior Achievement class yesterday, 7th graders and they are clueless about money! Didn’t know what income was! What the heck are they teaching in schools! Needless to say this will be the 1st of many classes I volunteer in.
Carrie Cimato says on: 9 February 2010 at 1:45 pm

This is fantastic Kia!!! All parents should read this, honestly! It is so very important. My husband and I live well below our means and I am really hoping to have that rub off on our children. I am a fanatical coupon clipper and sale shopper and my 3 year old son will already ask me “is this on sale?” or “do you have a coupon for this?” at the grocery store. Every dollar that we don’t spend stays in the bank. I can, most times, do my weekly grocery shopping for 5 on $100 or less. I read somewhere that if you watch your pennies, the dollars take care of themselves. And it’s true.
One of my biggest challenges & worries is how we will deal with the ‘name brand’ nonsense. My mother-in-law wanted to buy my 1 year old twins UGG boots and I had to very nicely ask her not to. A 1 year old in UGG boots will soon be a teenager who wants the best of everything. I didn’t want to start a precedent. I want them to learn the difference between want & need, even if we can afford it. If they don’t need it, keep it in the bank.
You are awesome to volunteer, this is so very important. I know so many people who have their kids insisting on name brand clothes, but they have nothing saved for their future. You will certainly be changing some kids lives, I hope they hear you!!!
Charles Haynes says on: 9 February 2010 at 3:16 pm

Great post Kia… I wonder if many of us parents are afraid to teach our kids, because we may have not done the best job ourselves with money matters.
I believe it is a gift of love from a parent to a child. I learned if I don’t think I know enough about what my kids need, then do the homework or let someone who has the knowledge speak to your kids. It won’t make you less in the eyes of your children… Our kids really love us even when we miss it.

Charles…