The Seeds for Financial Success are Planted Early
The Seeds for Financial Success are Planted Early
When I was growing up, my parents assumed I would marry and my husband would be in charge of our finances. Consequently, I found myself lacking in financial savvy. That was until I divorced and was forced to learn the ways of money for myself. Through necessity, I learned some very valuable lessons. Lessons that I began passing onto my child at an early age.
When my daughter was in kindergarten, there was a battery-operated ballerina doll that was all the rage. All the girls in her class had this particular doll. They spoke of it with a reverence that suggested it perhaps possessed mystical qualities. This hype, coupled with the fact that my daughter was odd man out, made her quiver with desire. She had to have that doll.
To me, her intense desire was a glimpse of things to come. It was the first time we had encountered the materialistic side of peer pressure. It was also the perfect opportunity to introduce her to the concept of money. I waited until my daughter asked for the doll again. I told her that I understood really wanting to have something, and I was going to show her how to get it.
First, I made sure that she understood the concept of money. Once I was convinced she did, I introduced her to the idea of an allowance. In exchange for her helping load the dishwasher after dinner and picking up her toys before bedtime, I would give her five dollars a week allowance. Doing a little quick math she responded with, “Wow. I can have my doll in three weeks!” I explained to her that it wouldn’t be that soon, but soon enough.
I showed her four jars and told her we were going to decorate them. “What does that have to do with ‘llowance?” she asked. I went on to explain to her that with money came responsibility. That each of us was responsible for taking care of our needs and those needs involved more than getting want we wanted right now. Every week, we were going to divide her allowance between the four jars. The jars were labeled spend, share, save for now, and save for later. I used stories and examples to illustrate the concepts of spending money, charity, short and long-term saving.
By the time the four jars were covered in glitter, paint, and stickers, my daughter and I had come up with a plan for her to purchase the ballerina doll at the end of one month. The plan involved using both her short-term savings and spending money. It also involved introducing her to the concept of financial planning and success. Below are some tips you can use to help your child learn some early money lessons.
• Introduce Money. Young children take pride in learning how to count. You can use this skill to introduce them to the concept of money. Gather pennies, nickels, dimes, quarters, and one, five, ten, and twenty dollar bills. Show your child how money adds up by putting coins and bills in groups. Show her that five pennies equal a nickel, five nickels equal a quarter, four quarters equal a dollar, and so on. Also, play lesser and more than games. Ask your child which is more, a one dollar bill or a five dollar bill? Then ask which is worth more a five dollar bill or a ten dollar bill? Eventually, your child will begin to comprehend the concept of money in terms of numbers.
• Practice Spending. Once your child is familiar with the concept of money and worth, put that knowledge to the test. On a trip to the store, pick out an item and show your child the price. Ask her how many dollars and coins she would need to buy the item? Over time, she will be able to equate numbers with money and money with purchases.
• Allowance. When your child understands money and its purpose, then it is time to start making her financial lessons more concrete. Decide on an appropriate allowance for her age. Also decide what you expect for that amount. It is important children learn that money is earned, so age appropriate chores should be part of receiving a weekly allowance. So should consequences for not completing those chores. No chores, no allowance. This will help motivate your child. It will also introduce her to a good work ethic and give her an opportunity to feel good about herself. Everyone is proud of a job well done.
• Saving. It is not enough to give your child an allowance. You need to show her how to manage her money, starting with saving. Explain to your child there are two kinds of saving. There is saving for something you want now and there is saving for what you will want in the future. Tell her that both types are important and need to be planned for. You should decide how much of her allowance she puts into short and long term savings. More than likely, she will easily grasp the concept of saving for a toy she wants. Saving for the future might be a more difficult point to drive home. This might be accomplished with storytelling or make believe. Ask her questions about what she wants when she grows up. Ask her if she wants to go to college, drive a car, or buy a house. Then explain that all these things are big expenses and if she starts saving for them now, she will be able to have them when she wants them later. Don’t worry if she does not seem to comprehend this at first. Just get her in the practice of saving. Eventually, with maturity, she will understand and by that time she will be well on her way to saving for her future.
• Sharing. When children are young, it is hard for them to think about helping people they don’t know. But like saving for the future, in time they will understand the importance of charity. Like saving, it will be up to you to determine how much of her allowance should set aside for charitable causes or donations. Help her pick out which causes are important to her and explain how her money can help.
• Open a Savings Account. Many of you may have already done this for your child. If not, now is the time. Take your child to the bank with you when you open the account. Let her take part in the process, and after you are done, celebrate with a small treat. Let her know she is taking an important step, and set up regular times during the month for you to go to the bank together. After she makes a deposit, let her look at her bank book. Let her see on paper how her money is growing and she is reaching her goals.
Like many other lessons we teach our children, learning how to manage money will stay with them throughout life. Giving children solid knowledge and the tools for financial success will ensure they are able to meet their needs and take care of themselves. Now and in the future.
The Seeds for Financial Success are Planted Early - To learn more about this author, visit Caron Goode's Website.
Like this article? Share it with your friends
We all know that money cannot buy happiness. Nor is it the root of all evil. Learning how to manage money, however, is important to ensuring a sense of security and self-worth. No matter whether your child wants to be a stockbroker or a school teacher, learning how to manage money gives them the key to financial success. Success that comes from knowing she has the skills and the knowledge necessary to take care of herself.
When I was growing up, my parents assumed I would marry and my husband would be in charge of our finances. Consequently, I found myself lacking in financial savvy. That was until I divorced and was forced to learn the ways of money for myself. Through necessity, I learned some very valuable lessons. Lessons that I began passing onto my child at an early age.
When my daughter was in kindergarten, there was a battery-operated ballerina doll that was all the rage. All the girls in her class had this particular doll. They spoke of it with a reverence that suggested it perhaps possessed mystical qualities. This hype, coupled with the fact that my daughter was odd man out, made her quiver with desire. She had to have that doll.
To me, her intense desire was a glimpse of things to come. It was the first time we had encountered the materialistic side of peer pressure. It was also the perfect opportunity to introduce her to the concept of money. I waited until my daughter asked for the doll again. I told her that I understood really wanting to have something, and I was going to show her how to get it.
First, I made sure that she understood the concept of money. Once I was convinced she did, I introduced her to the idea of an allowance. In exchange for her helping load the dishwasher after dinner and picking up her toys before bedtime, I would give her five dollars a week allowance. Doing a little quick math she responded with, “Wow. I can have my doll in three weeks!” I explained to her that it wouldn’t be that soon, but soon enough.
I showed her four jars and told her we were going to decorate them. “What does that have to do with ‘llowance?” she asked. I went on to explain to her that with money came responsibility. That each of us was responsible for taking care of our needs and those needs involved more than getting want we wanted right now. Every week, we were going to divide her allowance between the four jars. The jars were labeled spend, share, save for now, and save for later. I used stories and examples to illustrate the concepts of spending money, charity, short and long-term saving.
By the time the four jars were covered in glitter, paint, and stickers, my daughter and I had come up with a plan for her to purchase the ballerina doll at the end of one month. The plan involved using both her short-term savings and spending money. It also involved introducing her to the concept of financial planning and success. Below are some tips you can use to help your child learn some early money lessons.
• Introduce Money. Young children take pride in learning how to count. You can use this skill to introduce them to the concept of money. Gather pennies, nickels, dimes, quarters, and one, five, ten, and twenty dollar bills. Show your child how money adds up by putting coins and bills in groups. Show her that five pennies equal a nickel, five nickels equal a quarter, four quarters equal a dollar, and so on. Also, play lesser and more than games. Ask your child which is more, a one dollar bill or a five dollar bill? Then ask which is worth more a five dollar bill or a ten dollar bill? Eventually, your child will begin to comprehend the concept of money in terms of numbers.
• Practice Spending. Once your child is familiar with the concept of money and worth, put that knowledge to the test. On a trip to the store, pick out an item and show your child the price. Ask her how many dollars and coins she would need to buy the item? Over time, she will be able to equate numbers with money and money with purchases.
• Allowance. When your child understands money and its purpose, then it is time to start making her financial lessons more concrete. Decide on an appropriate allowance for her age. Also decide what you expect for that amount. It is important children learn that money is earned, so age appropriate chores should be part of receiving a weekly allowance. So should consequences for not completing those chores. No chores, no allowance. This will help motivate your child. It will also introduce her to a good work ethic and give her an opportunity to feel good about herself. Everyone is proud of a job well done.
• Saving. It is not enough to give your child an allowance. You need to show her how to manage her money, starting with saving. Explain to your child there are two kinds of saving. There is saving for something you want now and there is saving for what you will want in the future. Tell her that both types are important and need to be planned for. You should decide how much of her allowance she puts into short and long term savings. More than likely, she will easily grasp the concept of saving for a toy she wants. Saving for the future might be a more difficult point to drive home. This might be accomplished with storytelling or make believe. Ask her questions about what she wants when she grows up. Ask her if she wants to go to college, drive a car, or buy a house. Then explain that all these things are big expenses and if she starts saving for them now, she will be able to have them when she wants them later. Don’t worry if she does not seem to comprehend this at first. Just get her in the practice of saving. Eventually, with maturity, she will understand and by that time she will be well on her way to saving for her future.
• Sharing. When children are young, it is hard for them to think about helping people they don’t know. But like saving for the future, in time they will understand the importance of charity. Like saving, it will be up to you to determine how much of her allowance should set aside for charitable causes or donations. Help her pick out which causes are important to her and explain how her money can help.
• Open a Savings Account. Many of you may have already done this for your child. If not, now is the time. Take your child to the bank with you when you open the account. Let her take part in the process, and after you are done, celebrate with a small treat. Let her know she is taking an important step, and set up regular times during the month for you to go to the bank together. After she makes a deposit, let her look at her bank book. Let her see on paper how her money is growing and she is reaching her goals.
Like many other lessons we teach our children, learning how to manage money will stay with them throughout life. Giving children solid knowledge and the tools for financial success will ensure they are able to meet their needs and take care of themselves. Now and in the future.
The Seeds for Financial Success are Planted Early - To learn more about this author, visit Caron Goode's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Caron's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
Referred by: http://www.magicmarketingusa.com
 | ||
 |
||
|
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Great Sales Fallacies Radical Green Business Why MLMs Fail Measure Customer Loyalty Increase productivity |
|
 | ||
 |
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009 | |
 |
Top 50 Geek Business Blogs
Top 50 Geek Business Blogs | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
