Teaching Kids Financial Responsibility, Part 1

In this episode of ThimbleberryU, we dive into a crucial topic: teaching kids financial responsibility. Jon Gay and Amy Walls discuss practical strategies and personal experiences around introducing children to money management. One of the key points is the importance of teaching responsibility first. Amy emphasizes that kids should learn that some tasks are simply part of being in a family and shouldn't always be tied to financial rewards. When chores are linked to allowances, there’s a risk that children might develop an expectation of always being paid for contributing, which could undermine the value of communal responsibility.

Amy shares how her own family balances this by distinguishing between routine chores, which support the family, and additional tasks that can earn money. This system, which includes "bonus jobs" for extra earnings, teaches kids the value of effort and money while avoiding a sense of entitlement. The conversation also touches on how to engage young kids in financial learning. For example, letting them handle cash or count coins at an early age makes money more tangible. Jon and Amy agree that relying solely on credit and debit cards can obscure the concept of money, not only for children but for adults as well.

One particularly memorable anecdote involves Amy’s son learning to budget while shopping for a food drive. This hands-on experience with a limited budget helped him understand the importance of stretching dollars to maximize value. As kids grow older, parents can introduce more complex financial lessons, such as saving a portion of birthday money or learning to budget for personal expenses like clothes. These lessons can be tailored based on the child's age and developmental stage.

Amy also explains how she uses personal experiences, such as her own childhood encounter with buyer's remorse, to teach her kids about the emotional aspects of spending and saving. In addition, Jon and Amy discuss visual tools like clear jars labeled “save,” “spend,” and “share,” which can help younger children grasp the concept of managing money. For older kids and teenagers, opening a savings account or tracking spending through a debit card is recommended. Amy’s daughter, for example, learned a valuable lesson when she accidentally purchased a video game multiple times, illustrating the importance of monitoring bank accounts and understanding the consequences of online purchases.

Overall, Jon and Amy highlight the importance of being intentional and adaptable when teaching kids about money. Every family and child is different, so it’s about finding the right balance and approach that works for your situation.

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.