Additional Coverage:
- I thought I was giving my kids the best childhood ever until my 4-year-old asked why we didn’t own a ‘bigger golf cart’ (newsbreak.com)
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*Image courtesy of Rachel Morgan Cautero*
Living in a prosperous neighborhood, I’m keen on not letting my children overlook the value of money. I’m putting in place four strategies to instill sound financial principles in them, including starting chores early and being transparent about financial realities. I also turn down requests for unnecessary purchases even when we can afford them.
Growing up in a middle-class family, financial education wasn’t a formal topic. I learned through context, understanding some months were tighter than others, restricting us from spontaneous expenditures like new shoes or dining out.
Now, residing in a well-to-do area, my husband and I have some financial flexibility. Our neighborhood boasts well-kept parks and pools, and yes, a golf cart that I didn’t originally favor. Despite these amenities, questions from my 4-year-old about wealth and possessions made me realize the need to teach them about financial literacy sooner than expected.
Here’s how I’m teaching my children about money and value:
**1. Limiting Gifts**
I love celebrating with decorations, parties, and gifts, but I’ve learned to restrain the gift giving. We now cap birthday presents to five and Christmas gifts to ten per child.
This not only keeps our holidays simpler but also helps reduce stress.
**2. Introducing Chores Early**
My kids are learning responsibility through chores. My 4-year-old takes care of feeding pets and tidying up, while even my 2-year-old assists by putting dishes in the sink.
They enjoy helping out and even made $26 from a lemonade stand, promoting some early business skills.
**3. Saying ‘No’ to Extra Purchases**
Despite being able to afford it, I often decline additional purchases. Post a Build-A-Bear visit, the requests for more have persisted, yet I resist.
It’s important they learn that financial capability doesn’t necessarily justify spendings.
**4. Transparency About Our Finances**
I’ve chosen to be open with my kids about money, even challenging subjects. Discussions about homelessness have provided opportunities to talk about broader social issues and appreciate their own circumstances more deeply.
To me, being rich encapsulates more than financial status—it’s about a wealth of relationships and a supportive household. Hopefully, this lesson in value extends beyond just money.
*Originally published in May 2022 on Business Insider.*
Read the article [here](https://www.businessinsider.com).