A Dad of six and the co-founder of a financial app for families stated that parents must teach their children the value of work and money and how to efficiently manage the latter.
Gregg Murset is father to six nearly grown kids. At the same time, he is a certified financial planner and the co-founder of the chore app Busy Kid which teaches families how to manage money. Based on his experience, parenting boils down to one vital goal - to help the children become productive people so they can leave the house. Of course, this is after teaching moral essentials like kindness, generosity, compassion, and the like.
This goal springs from two fundamentals - one is teaching the children how to work, and second, teaching them how to manage their money. By also focusing on the children's financial responsibility, parents can create a successful launch for the children instead of a "failure to launch."
What parents need to know about money and their children
As a dad and a financial professional, here is what he wishes more parents knew.
1. It is okay to be motivated with money.
A lot of parents want their children to do chores, period. But children do things when they are motivated. Thus, Murset suggests that there should be external motivation, which can mean putting money on the table instead of nagging the kids to do chores.
Chores are a "natural starting point" for kids to learn work ethics. If parents are opposed to paying for all the chores, they have to set some base guidelines and expectations for basic chores they need to do without reward and then pay for those above and beyond the basics.
2. Educate children about money management.
Kids love any rewards, but they get more excited when the reward is money. They want to earn it. However, they also know how to quickly "burn it." Thus, education on money management is a must.
Murset believes in this "three-part system." Save. Spend. Share. This will enable kids to have fun while learning to earn, give and save their funds.
Here is the key - the money they are earning must mean something to them, something that they worked hard for, something that they can call their own. Parents should not immediately open their wallets and give to their children whenever they ask for money. Money from others is so easy to spend, but when the money that is being spent is from their own funds that they worked hard for, then authentic learning happens, and the real value is realized.
Read Also: 9 Ways to Help Your Kids Be Financially Literate
3. Parents need not be perfect.
Most parents get intimidated whenever they need to educate their children about finances. They feel like either they do not know what they are doing, or they are not the right people that should be teaching them about the topic of money.
Parents need to fight the intimidation; instead, they should incorporate their children into the family's financial discussions.
Murset suggests that the car is a great place to start financial conversations since parents spend so much time driving the kids around. Instead of just whining about the price of gas, it would be better to explain to your kids why the price is rising and what inflation is. Share how much is being paid for the car and how it is getting paid every month.
The next time the family is out to eat, allow the child to calculate the cost of all the food ordered or compute the tip.
Parents should not miss basic and everyday situations like this as financial teaching opportunities. Over time, Murset assured, these little conversations and actions will help children think differently and smartly about money.
