Keeping money in perspective.

One simple idea to help your child to put money into a healthy  perspective is to:

• Ask your kids to close one eye and hold a quarter a few inches in front of their eye.
• Now ask them what they can see out of that eye.
• Next ask them to hold the quarter as far away from their opened eye as possible (still holding it level with the single open eye).
• Next, ask them what they could see when the quarter was close (the typical answer is just the quarter).
• Now ask them what they could see when the quarter was held farther away from their eye (the typical response is that they can see both the quarter and  all the other things in front of them).

So, as you guessed, this object lesson is intended to communicate that if all you pursue in life is accumulating money and wealth, that will block out everything else in your life.  However, if  you keep money in a proper perspective, you will enjoy a more balanced life.

Here are some great ways to teach you kids about money

1. When your kids are young,  consider setting up a weekly allowance for them. There are several considerations that you may want to think out  before offering the allowance.  For example:
   • Do you want the allowance to just be automatic, no strings attached?
   • Do you want to the allowance to be tied to work that they do around the house?
   • Are you willing to consider paying your kids a little extra when they choose the save some of their allowance (paying interest on savings)?   Likewise, are you willing to charge them a little extra money when they ask for an advance on their allowance?
   • Do you want to encourage  (or require) your kids to set aside some money to share (with those less fortunate than them)?
2. Ask your kids where they think money comes from.
3. Ask your kids if they think it is a good idea to save money (and why)?
4. Sit down with them and try out this “what if “calculator to show your kids how fast money grows when invested  (the lesson of compounding).

The follow is an interview with a six year old child regarding their views about money.  You may be surprised by the responses.   Try asking similar questions to your children and you may be surprised as well:

(Q)  What is money?

It’s tender.  A dollar and coins.

(Q) What  do you do with money?

Spend it save or share it.

(Q) What happens when you only have a little bit of money?

You could end up with no money if you keep spending.

(Q)  What can happen when you have way more money than you need?

You can get greedy or rich.

(Q)  How do people get money?

They work at work.   If you’re like a kid you can have an allowance.

(Q)What’s an allowance?

Money that you can either save or spend.

(Q) Can you be happy with just a little money?

Well, kinda, well if you save or spend?

(Q)  What do you do with the money you share?

At church we have like this little bank.  We put money it and give it to people that need it.