Teach Your Children

We've all been there, the tantrums at the toy aisle, or the meltdowns as we are leaving the store. I really don't miss those days. If this is you, there is something that you can do. A long time ago, my wife and I learned about a commission chart. That changed our entire perspective on how we taught our kids about money. You see, we are all kids at heart and we all want "stuff". If you have figured out that you need to save money for stuff, and don't buy with debt, it makes it easier to walk by the latest and greatest things. Save until you have enough saved up right? Same goes for kids. A commission chart is not much more different than early budgets and teaches patience to save up for things that they want. If you think about it, a commission versus an allowance makes sense as you are teaching your children to work for what they want and gets them engaged. An allowance is you giving them money every week. There are some things that you will need to understand before starting with the commission chart as far as age specific guidelines. Please use the ages as a guide only as I used from - this is ideal.

Once you decide on what commissions your kids will be able to do, create a chart with their commissions amounts they earn per task and stick to that. Please also remember that payment is different as well, and try paying them in the following stages. If your child is 2-4 years old, you can pay them on the spot and when they go with you to the store, they have the money in hand to buy what they want. When they are older, pick a day where you can have a meeting with them. When it comes time to pay for commissions, take the dollars put them in a clear container. When they are really young and you want to show the money growing fast, crumple up those dollars. Why crumpled up? Well you see, money is 20% knowledge and 80% emotional, if you crumple up that dollar, 10 one dollar bills looks like a lot in that clear container versus flat ones right? The best part is that you can begin a mini envelope system with them as well. One envelope for Giving, one for Saving, and one for Spending. When they get older, take this opportunity to help them understand more about responsibilities and bigger goals. This is a great time as well to have a "family meeting" and discuss a bible verse. This will begin to build a relationship with your kids that they will hopefully bring forward into their adulthood.

Proverbs 13:22 says: A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.

If you follow this and teach your children, you will see a decrease in the tantrums and you will see them grow into responsible adults. Give, Save, Spend. It's that simple.

Are you looking for a financial coach that can help you relate with money? Setup some time to meet with me here:

Jim Poirier


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