After sharing the Gospel, one of the most important things you can pass on to your children is how to handle money God’s way. The trouble is, a shocking percentage of parents fail to pass along strong money management skills to their kids.
Here are 5 money lessons your kids should know, and fortunately, it’s never too late to start teaching them.
- Kids need to know that credit cards aren’t free money! Yes, a bill comes every month and if you don’t pay it in full, interest piles up fast. Teach by example and pay off your credit cards every month.
- The biggest “secret” to managing money is to live on less than you make. Otherwise, you can’t save for emergencies or invest for the future. Teach your kids to save every time they receive income.
- Giving. Jesus was right when He said, “It is more blessed to give and to receive” (Acts 20:35). Young children naturally think they’re the center of the universe. Teaching them to generously help those less fortunate is an important life lesson.
- Teach them to manage a bank account. It’s not rocket science. Help them set up an account and teach them how to record transactions, keep the register balanced, and reconcile the account.
- Finally, paying back student loans isn’t fun. In the past, students could borrow their way through school, get a good job and pay back loans quickly. No more! Today jobs are harder to come by and student debts are a lot higher. Teach them to borrow as little as possible. This will help them choose a major or a minor that gives them marketable skills so they can land a job after graduation.
Remember what Proverbs 22:6 says, “Train a child in the way he should go, and when he is old he will not turn from it.” Teaching your kids to manage money God’s way is a gift that will last their whole lives and impact their children as well.
Warmly in Christ,