Teaching Kids The Value of Money

by Seth Rockman & Brandi Savitt- August 30th, 2012

Materialism Matters

Hey moms!  Remember the days of Guess jeans and Forenza sweaters?  If you didn’t own them, your life might well have been over, right?  And while what’s in style may have changed, our kids desire to fit in has not…

Lucky for us, we sat down with high school Social Worker Seth Rockman.  According to Seth, teaching kids the value of money now does more than just help them in the future, it actually helps them build the self esteem they need today to succeed in school both socially and academically.

Fitting In

Pre-teen and teen “identity” too often centers around the perception that the labels you wear and the gadgets you carry define who you are - there may be some guilty adults out there too…   In our fast paced, consumer society, the need to HAVE, and to show it off, permeates every socioeconomic group.  If you don’t have the latest and the greatest – you’re out in the cold…

What You Give Your Child Counts

Whether you’re wealthy or struggling to make ends meet, how much money you spend on your child affects far more than just YOUR budget.  Understanding how important it is for your child to fit in at school is crucial, but the frequency with which you buy non-necessities to feed that desire, can significantly influence the kinds of earners and spenders your kids become as they get older.

Indulging kids every request to keep up with their friends is not necessary.  Instead, engage them in a conversation about why they really “need” something.  If it’s truly important to them, they will be willing to work for it.

Motivate Your Kids with Money

Seth has seen time and time again, that the kids who have been taught to be financially savvy are likely to be more motivated in school.  A young person who has a clear understanding of the connection between work ethic, self-discipline, money, freedom and “stuff,”  is a young person who is far more likely to take ownership of their education and goals.

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2 Responses to “Teaching Kids The Value of Money”

  1. Liz says:

    Great tips. We started an allowance with our daughter when she was 4. She has a “Moon Jar” bank where every week she divides her 4 quarters into “spend”, “save” and “share”. We give her a dollar a week- in quarters- and she puts 1/2 in spend and one quarter in the other 2. It’s a great way to teach about saving for long and short term and also giving back to others.

  2. louie says:

    Money management and the teaching of essentials defines “The Good..The Bad… and the Ugly” in parenting. Teaching your kids about being an “Individual” and not a pack animal lets them examine themselves, for later life, and how they want themselves to be viewed by others.

Any Thoughts?