A Lesson in Money; Is It Too Tough?

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Ryan Cooley

I recently heard a story on the news that raised a lot of criticism.  It was about a mother who was teaching her daughter about money.  She charged her 5 year old monthly rent that was to be paid using a portion of her allowance.  Upon collecting the $5 rent, she was then depositing the money into a savings account for when her daughter is older.

I recently heard a story on the news that raised a lot of criticism.  It was about a mother who was teaching her daughter about money.  She charged her 5 year old monthly rent that was to be paid using a portion of her allowance.  Upon collecting the $5 rent, she was then depositing the money into a savings account for when her daughter is older.

Before I continue, I want to state that I am in no way telling people how to parent or judging this mom.  In fact, I applaud her for attempting to instill good values through life lessons.  This is an area most parents would agree is important.

In my own life, I had to learn lessons about money the hard way.  By making mistakes and improving my financial management over time, I learned that money does not grow on trees.  I also realized that we need to work hard and save instead of seeking instant gratification.  This is essentially the lesson the mom was trying to teach her daughter.  Unfortunately, just like in life, the lesson about money was a harsh one, especially for a 5 year old. But, is failing to educate your children about finances and sending them off into the world unprepared worse?

The criticism from the public was not because of what she was teaching but rather how she was teaching it.  It is important to make sure the lesson does not fall flat because of the negativity that surrounds it.  Is 5 just too young to charge rent?  Is her daughter able to understand what her mother is teaching her, or is it just coming across as unloving and mean?  I will let you be the judge.  The point is, if done correctly, teaching a child about money can be fun and rewarding.

There are plenty of websites and books to help with this curriculum.  In this article, for example, you can learn different lessons to teach your kids and at what age you should teach them.  You will notice that the lessons are positive, and they work towards a goal worth celebrating.  The thing to remember is to make it fun and take baby steps.  Your children will have plenty of time to worry about money.  The more we teach them now about how to get started on a good foot, the more we can help them avoid financial stress in the future.  In my opinion, the lesson the mom was teaching is a good one as long as her daughter understood the intention.  If not, then maybe the lesson should be reserved for when her daughter is older. For ideas on how to speak with your children about money, please see our free guide for talking to Millennials about managing their finances.

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Your Silicon Valley Bank Questions Answered

You likely have heard about the recent Silicon Valley Bank (SVB) collapse and probably have questions. Here, we provide you with unbiased answers to your questions.

Thinking About Retiring Early? 8 Things to Consider First

Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner We’ve all asked ourselves whether it’s too early to retire (usually after a particularly challenging commute or dealing with a difficult client).  You may have even gone so far as to take a sneak peek at your account statements …

4 Tips to Take Your 401(k) to the Next Level

Matt Kory, Vice President, Retirement Programs As a retirement income vehicle, the 401(k) is second in popularity only to Social Security – and as CNBC reported in 2019 the number of 401(k) millionaires is at an all-time high. But is a million dollars even enough for your retirement needs? 

Should I Open a Traditional or Roth IRA?

Multiple retirement savings vehicles are available but having options can be overwhelming. Each option comes with different rules leading to a variance of outcomes in the short-term and long-term. It’s not that dissimilar to choosing what to eat.

1 2 3 117 118 119

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us