“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!
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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
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
How do I teach my child about money? ›
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.
By the time kids are seven a lot of their financial habits are already formed, he added, noting that kids are aware of and are curious about money far sooner than many parents might expect. Hirshman suggests starting even earlier, between three and five.
Why don t parents teach their kids about money? ›
Time and time again, I see the same top three reasons firsthand: Parents think they don't know enough about finance. Money lessons aren't consistent. Parents simply haven't started teaching their kids.
What is the 40 40 20 budget rule? ›
The 40/40/20 rule comes in during the saving phase of his wealth creation formula. Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.
What is the 50 15 5 rule? ›
50 - Consider allocating no more than 50 percent of take-home pay to essential expenses. 15 - Try to save 15 percent of pretax income (including employer contributions) for retirement. 5 - Save for the unexpected by keeping 5 percent of take-home pay in short-term savings for unplanned expenses.
How do I teach my 7 year old to count money? ›
Always start with the coins of greatest value and work your way down. For example, if you have 3 nickels, 1 dime, 2 quarters, and 5 pennies, count the quarters first! After the quarters, the second most valuable coin is the dime. Then comes the nickel.
What is children's concept of money? ›
Children often see adults exchange coins and bills when they buy things. As children grow and start to make choices, they learn that people, things, and money have value. These concepts form the foundation for understanding the importance of spending, sharing, and saving.
What is the concept of money for kids? ›
Money is a mode of payment accepted by both sellers and buyers for goods and services. Money is what we give in return when we buy stuff like food, clothes, house, groceries, etc. We give money in return for purchasing anything. This is a simple trade or exchange.
What percentage of parents do not talk to their kids about money? ›
Some 24% talk to their children less often and 31% never do. Those who earn less money were more likely to have those money conversations once a week or more, as were Black and Hispanic respondents, the survey found.
If you need financial help for regular, day-to-day expenses, talk to the children about how much they can spare every month. Request such funds only for essential expenses, not for holidays or discreet purchases, and be mindful that you are not upsetting the budgeting and saving pattern of your children.
Is it OK to talk about money in front of kids? ›
Make sure you do not create a sense of panic, argue or fight about money issues in kids' presence, blame the spouse of kids, or lie about a difficult financial situation. When it comes to achievement of their goals, especially higher education and weddings, openly discuss your financial ability to meet these.
Is it important to teach 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.
Why do parents not talk about money? ›
Shame. Having conversations with children about financial difficulties can feel like admitting that as a parent we can't meet their needs. Feelings of shame can be a powerful force making us want to avoid talking about the topic of money with our children or anyone.
What percent of parents talk to their kids about money? ›
There is some evidence that barriers inside the family are breaking down, even if the money conversation sometimes doesn't go as planned: While 73% of parents say they talk regularly with their kids about spending and saving, just 61% of kids agree, fund company T.
Is the 50 30 20 rule outdated? ›
If the 50/30/20 budget was once considered the golden standard of budgeting, it's not anymore. But there are budgeting methods out there that can help you reach your financial goals. Here are some expert-recommended alternatives to the 50/30/20.
What is the disadvantage of the 50 30 20 rule? ›
It may not work for everyone. Depending on your income and expenses, the 50/30/20 rule may not be realistic for your individual financial situation. You may need to allocate a higher percentage to necessities or a lower percentage to wants in order to make ends meet. It doesn't account for irregular expenses.
What is the 50 30 20 rule of budgeting examples? ›
For example, if you earn ₹ 1 lakh, you can allocate ₹ 50,000 to your needs, ₹ 30,000 to your wants and ₹ 20,000 to your savings, every month.
Why is the 50 30 20 rule good? ›
The 50/30/20 rule is designed to help you reach your long- and short-term goals. For example, expenses in your "wants" category are typically short-term goals, while your "savings" category is usually for long-term goals.
