“No” is just a part of life. It’s not the fun part and can be a hard lesson for our little (or big) kiddos to learn. As a parent, it can be hard to be the one teaching this lesson.
But we want the best for our kids and our family, sometimes that can mean we have to say no. I’m not sure anyone likes to tell their kids no. It’s definitely not my favorite.
But here’s the thing. If we want to be teaching kids about money then we need to teach them about self-control, especially when it comes to your budget.
In the month of October I am participating in Living Well Spending Zero challenge where my family and I are spending as close to ZERO DOLLARS as possible.
You can still sign up for the challenge by visiting LivingWellSpendingLess.com. Which you totally should because it will help get your budget jump started! You can read more about Why I am Doing a Savings Challenge and find out why YOU should do it with me!
Back to the kids… this challenge got me thinking about how much more I am going to be telling my kids no in the next 30 days. I’m thinking that might be the hardest part for me.
In an effort to help you and myself at the same time, here are three tips on telling your kids no to assist in teaching kids about money.
3 Tips for Teaching Kids About Money By Saying “No”
1. Include them in the conversation
Those little guys will understand more than we give them credit for. Obviously this conversation is going to be different depending on your kid’s age. In our house right now we only have little ones. Really little. Like 4 and 2 year olds.
Usually when we are teaching kids about money the conversation is kept very simple. I don’t want to give my kids a complex about things costing too much or us not having enough money. But what I do want is for them to understand that we need to be responsible with our money.
No matter what their ages may be, just keeping the entire family involved in the conversation is going to help. It provide them with a little more understanding as to why you are saying no. The line “because I said so” never does anyone any good.
2. Provide an alternative
I’m not suggesting that every time you say no that you need to have a back up plan. But sometimes it will be helpful to have an alternative for when the budget doesn’t have so much wiggle room.
Just this morning we had to do this exact thing. As a family we usually go to a local pumpkin patch where the kids not only get to pick out pumpkins but there are a crazy amount of fun activities for them to do. I’m actually getting a little watery eyed thinking about not taking them this year.
Because we are doing the no spend month on top of being extremely strict with our budget (in plans to buy a house!) as a couple we decided that this was one activity we would for-go this year. It may sound silly but we are very dedicated to our plans to buy a house in two years.
The alternative that we came up with… We are going to have a “pumpkin” decorating party. We are going to have the family come over and decorate paper jack-o-lanterns, create some cute fabric pumpkins, or maybe wood pumpkins and eat some yummy fall treats. All using craft supplies and left over wood that we already have laying around the house. Still super fun and we won’t be spending any money!
3. Don’t set up the expectation or break the bad habit
If you can, avoid starting the bad habit of creating an expectation of buying something. An example of this might be that every time you go to a certain store your kids get to pick out a toy.
I’m not saying that an occasional reward isn’t great! I’m just trying to help us avoid the mistake of creating an entitled attitude in our children. If you already have this mentality set up, you gotta cut it out! There will be crying, maybe a melt down in the middle of Target. Stick with it! After one or maybe two trips without feeding their expectations, it will get better! You can do it!
Are you ready?
Okay mama! You got this! Sometimes being a parent is tough work. But if you stick with this method of teaching kids about money, your kids will grow to be better prepared to manage their own finances.
Want to learn more? You might also like these articles:
Why I’m Doing a ZERO $pend Challenge
Our Plan to Buy a House in Two Years
FREE Budget Meal Planner and How it’s Going to Save You Money
The LAST TIME You Will Ever Start a Budget!
Your FREE toolkit for creating a goal based budget to keep you motivated and start achieving a life you never thought possible!
Your information will *never* be shared or sold to a 3rd party.
how to save moneysave moneysaving moneyteaching kids about money
About Brittany Cooper
My name is Brittany and I am devoted to saving our family money in everything we do. Yes I do coupon but that is not the only frugal thing I do. I'm a bargain hunter, tester of all things DIY, trip planner, our family’s chef, and lover of all things chic. I may be obsessed with being frugal but I still love to add bits of beauty to our home. Decorating on pennies works, it just takes a little patience. I am a firm believer that with a bit of planning you can save your family a lot of money.
FAQs
When they're little
- Introduce the value of money.
- Emphasize saving.
- Introduce them to investing.
- Encourage a summer job.
- Introduce them to credit.
- Consider a Roth IRA.
- Help them set a budget.
- Encourage them to stay invested.
Now it's time to teach them more responsibility and how to use their money with the future in mind.
- Teach them contentment. ...
- Give them the responsibility of a bank account. ...
- Get them saving for college. ...
- Teach them to steer clear of student loans. ...
- Teach them the danger of credit cards. ...
- Get them on a simple budget.
While the idea of taking risks can be daunting, wealthy parents teach their children that calculated risks are necessary for significant rewards. Whether it's in investments or entrepreneurial ventures, embracing a certain level of risk can lead to exponential growth.
What age should you teach kids about money? ›
He recommends teaching five- to eight-year-olds “very, very basic things” like that money has value and how choices made with it have an impact. For eight to 12-year-olds topics can be more complex, Landolt believes. “You can talk about the different types or uses of money.
Should parents teach their kids about money? ›
Teaching kids about money early on will help them to become more financially independent as they get older. Financial education has been linked to lower debt levels, higher savings, and higher credit scores as children mature into adulthood.
How do I teach my 7 year old to count money? ›
Skip-counting is where you count by multiples of 5s or 10s or 20s. It is a simple way for your child to count bills and coins of most U.S. denominations. Continue practicing skip-counting with your child until they can skip-count all coin values up to one dollar and 100 by 5s,10s, and 20s.
How to teach children the concept of money? ›
Piggy banks are great for younger kids. Even though money is increasingly virtual, coins and notes help kids see and understand money. They can see their money grow as they save. Opening a savings account is a good way to introduce kids to banking, saving and interest.
How do you teach a spoiled child the value of money? ›
Talk with your kids about saving for short term wants, like a new cell phone for older kids or a Lego set or doll for younger kids. Help them set aside a specific amount of allowance each week to save so they can reward themselves with the exciting purchase. Long-term savings is critical, but often neglected.
What is money in simple words? ›
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment.
What do the rich teach their children that the poor don't? ›
Kids from rich households inherit the attitude of being responsible for their actions and consequences. Especially in the event that things go wrong or deviate from their plans and expectations, they accept full responsibility for it. In this way, they are able to find a way forward.
14 money lessons rich parents teach their kids
- Success isn't free. Wealth and success take work. ...
- Expect to make it. The wealthiest people set high expectations. ...
- Fall in love with work. ...
- Invest. ...
- You deserve to make it. ...
- Choose prosperity over entertainment. ...
- Rich people are not always smarter.
Keep It Simple and Relatable
For all kids, especially young ones, it's important to make conversations about money and class relatable. That can help their understanding of why some people do well financially while others struggle. This was one of the reasons I rewrote the classic Little Engine that Could story.
How do I teach my 7 year old about money? ›
Teach them the value as well as the cost
You spend money on things that you value, so in a way your spending habits reflect your values. Giving back to others may be important to you and your family. If so, encourage children to donate their money to causes they think are important.
Should you tell your kids about money problems? ›
Kids Know More Than You Think
That's why parents should make every effort to speak with them to ensure they don't develop misconceptions about personal finance. Kids are likely to draw their own conclusions—which may be inaccurate—if you don't discuss financial topics with them.
Why is it important to teach kids about money? ›
It can help them make better financial choices
From saving and investing to creating and sticking to a budget, early money lessons can give your kids a leg up when it's time for them to make more significant financial decisions.
How do you teach money lessons? ›
With a deck of cards that show a different amount of money, students will draw one card and then figure out how many different coin combinations they can use to create that amount. I love pairing these cards with plastic coin manipulatives in a math center. This gives students lots of practice counting coins.
What age should a child know how to count money? ›
It's always important to remember that kids develop at different rates, and you'll know best when to teach your child to count money. However, as a rough guideline, children can start learning to count money shortly after they start learning to count in general. This could be around age 4.
How to explain currency to a child? ›
Currency is the official money of a country. It consists of paper money and coins. Each country has its own form of currency, which is overseen by the central bank of that country.
How can I start learning about money? ›
Talk to professionals, such as financial advisors, bankers, accountants, and attorneys. They are often happy to share their general knowledge with those just starting out, especially if you show a keen interest in learning more.
