Raising Credit-Smart Kids
“Blessed is the man who finds wisdom, the man who gains understanding, for she is more profitable than silver and yields better returns than gold ” (Proverbs 3:13-14 NIV)
What would parents like to see their children accomplish? If you surveyed thousands of people, you’d probably get a broad range of answers, ranging from professional ice skater to company president.
If you reversed the question and asked parents what they hope their children never do, many of them would probably list their own financial mistakes. Chances are that many of those mistakes would involve credit.
If you want to build a good financial foundation for your children, it’s important to start when they’re young. One of the most important lessons they can learn is saving. If kids never learn to be patient and save, credit may become a way of life for them in later years.
Teach your kids to save some of the money they receive from their allowances or the paid work they do around your house. Then, allow them to spend a certain amount of their savings during a shopping trip.
Before going shopping with your kids, make purchasing decisions in advance. Tell them they can buy a treat, if that is in the budget, and set a price limit. But also emphasize that you won’t be buying any other items.
If they want something that costs more, teach them to be patient, save, and buy that item on a later shopping trip. As your children grow older, encourage them to set larger savings goals.
By teaching your children to plan ahead for the future and save enough to fulfill their plans, they will learn God’s ways are better and debt is not necessary.
Daily Scripture Reading: Leviticus 1:1-5:13