[nukkad] TEACH YOUR KIDS ABOUT SPENDING....

[Albert Joseph <>]

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TEACH YOUR KIDS ABOUT SPENDING
Parents have an important role in teaching their children about spending.
Unless they learn good spending habits at an early age, spending can be a
lifelong struggle.
What spending is:
*	Spending is not the opposite of saving - it's the opposite of
earning. Money is a means of exchange. You earn it and you spend it. In and
out.
*	Saving is keeping some of your spending ability for another time.
There is nothing wrong with spending money; you just need to be sure you are
being wise stewards of how you spend it.
*	Eventually, you spend all of the money you earn, so knowing how to
spend it is important.

	Three rules for kid's spending:
*	You need to tell the difference between your needs, your wants, and
your desires.
*	You don't have to buy anything. When you do spend your money you
must spend it wisely on things the Master approves of, making sure you get
good value (good product and a good price).
*	You need to learn not to spend everything you have right away.

	Tips:
*	Don't teach your kids that spending is wrong and saving is right.
Saving is just delayed spending. Even giving is spending your money on
others. The goal is to discourage foolish spending and teach and encourage
wise spending.
*	Separate the money you spend on your kids from the money they spend
on themselves. When their money is gone, don't supplement it.
*	Let your kids know before you leave the house what the spending
decisions are and stick to them. This will show them that you are
disciplined and will know what to expect.
*	Let them spend their spending budget the way they want to - with
some well established exceptions you've already discussed (for example, they
can't spend it all on junk food).
*	Teach your kids the difference between needs, wants, and desires.
For instance, clothing is a need, but can range the full gamut from need to
desire. A snowboard, for instance, would be a desire.
*	When shopping explain the process to them. Show them how to compare
prices and quality.
*	Let them know your budget and objective. Say for instance, We have
new tennis shoes in the budget for you this month. My budget is $50. My goal
is to get you shoes you want by looking for a sale over the next few weeks.
*	When your kids are spending their own money, be sure they go through
the wise-buying process: Look and compare and gather information. Pray for
wisdom and help in finding the best deal, then, when you are satisfied that
your shopping is over, buy it.
*	Don't rescue your kids from bad purchases or overspending.
		Teach them how to correct the problem now and in the future,
but let them feel the results of their decisions.
*	Teach your kids to be responsible for the things they have.
Being a good steward doesn't end with a purchase decision. It continues with
the proper care of possessions. A sweater bought on sale is overpriced if
it's left on the floor.

>From Financial Parenting by Larry Burkett and Rick Osborne. Copyright © 1996
by Larry Burkett
10.10.2000




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