Boy making decision about his money
According to Peter Grandich, author of Confessions of a Former Wall Street Whiz Kid, money is mentioned more than 800 times in the Bible. Clearly money has been an issue in our lives for a long time. What the Bible says about money can help your family now and your kids as they grow up.
In another source we learn that there are nine practical principles about money in the Bible. For the complete list click here. https://get.tithe.ly/blog/bible-verses-about-money.
Two of these principles fit well with the concepts in my book, The No-Cash Allowance, which gives kids hands-on money management experience.
Using money as a tool
One of my favorite quotes is by Ayn Rand, author of Atlas Shrugged. She says,
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”
By itself money has no value. Money has value when we make decisions about how to use it. Our decisions determine how money affects our lives.
Children can learn this early by having total control and decision making of money. They need control of the tool to learn how to make good decisions. At the same time they learn from their mistakes while they are in control.
Money management is all about making decisions. Starting early helps kids build confidence in their decision-making skills. Kids as young as pre-school can manage money.
When parents let their kids “be the driver,” the kids take on the responsibility of learning how to make the best of their funds.
Managing personal finances
Dave Ramsey offers good advice when he says, “You must gain control over your money or the lack of it will forever control you.”
Money management is process of making decisions. Some decisions for adults are no-brainers, e.g., paying rent or mortgage. In many other money situations we can control our decisions, e.g., ordering from a restaurant or cooking at home.
Kids who have allowances and control over their decisions can learn to control their decisions. They might be faced with a kid-size decision about buying a game now or not spending now so they can buy a better or different one in the future.
A guide for parents
If you’re looking for an easy to use money management system consider using The No-Cash Allowance. In this guidebook for parents you learn how to teach your kids to manage money as a number in their own account in your home.
Kids will learn how to use money as a tool and how to manage their own finances. You can give them this life-skill in your home while instilling in them family values that will guide them in the future.
Click to learn more about The No-Cash Allowance