Teaching your children to give, save, and spend is a learned experience. Children imitate their parents; that's a fact of life. It's therefore important to set an example for your children when they're very young. The lessons learned will carry over into their adult lives.
Teaching your child to give begins with showing compassion for others. For example, during spring cleaning you might decide to clean out the family closets. With your child in tow, you begin to take clothes out of everyone's closets. When your child asks what you intend to do with the clothes, explain that some of the items are used or no longer fit and that you want to give them to a family that doesn't have as many clothes your family does.
As your child processes this information, be sure to ask him or her if they have any toys that they longer want or need. The likelihood is that your child will hurriedly run into his or her bedroom and return with a few unwanted toys. As you hug your child for being so generous, you will have planted the precious seeds that will grow into a full understanding of not only the necessity but also the joy that comes from selfless giving.
Teaching children to save should also begin when they're very young. Perhaps you've given them a shiny new piggy bank. Explain to your child that any money he or she receives either from Mommy, Daddy, Grandma or Grandpa should be put into the piggy bank. Then proceed to give your child a shiny new quarter to make the first "deposit" and watch how excited he or she becomes as the quarter clinks at the bottom of the piggy bank.
Next, explain to your child that most of the money has to go to the bank. You can let them keep a dollar or two, but spend some time gently telling them why it's important to save it this way. Ask if there's something special that he or she would like to have, but be sure to set a specific reasonable amount that will be utilized to purchase that special something (this will keep the goal 'doable' and help maintain your child's interest and dedication to the task). Then, tell your child how much they'll have to save in order to own the item. This kind of quiet urging will encourage your child to save and begin to cultivate an understanding of responsibility. It will also help to develop discipline and lay the groundwork for a solid work ethic later in life.
But, don't forget, you must also show your child how to spend wisely. While you've already taught the importance of giving and saving, you've also given him or her permission to save money to purchase a special item. This is the point at which discipline will play a critical role.
When your child has saved enough money to buy the item wanted, don't put off taking him or her to the store. As they enter, their eyes will undoubtedly widen with excitement. There are so many toys and games to choose from that they may want an additional item as well. Now you must explain that he or she has saved for one specific item, and there's only enough money to buy that. They may not like that answer, but they'll quickly recover once they get the item they originally wanted anyway. And they'll have learned another important lesson, as well.
But, hold on; your teaching session may not be quite over. Let's assume that there's a similar item available at the store for less money. This would be an ideal time to begin to teach your child how to comparison shop. Moreover, before purchasing the item it would be a good idea to check the local papers to determine if and where the item is on sale – another excellent opportunity to teach him or her how to save money and shop smart.
Giving, saving, and spending are all part of the learning experience a child is taught by example. These examples are just a few ways in which your children can learn the compassion, discipline, and responsibility that will benefit them throughout their lives. No doubt you can think of even more.
