Money Management and How to do it Right
My son just turned twelve, and for his birthday all he wanted was money. He managed to rake in almost $500! As a parent, I am using this as an opportunity to teach him about money management and how to do it right. Information for this post is sourced from Genworth Financial in partnership with the SheHeard Influencer Network.
Money Management
The first thing my son wanted to buy was a pair of custom designed shoes with a price tag of over $200. Ugh. You can imagine my horror. For one thing, his feet are growing at an unprecedented rate and he’s going through gym shoes about once every 6 weeks. Plus, the wear and tear he puts on his shoes is insane. With football and his general energetic spirit, shoes are trashed relatively quickly despite his growth spurts.
While explaining that expensive shoes would be an irresponsible, frivolous and wasteful purchase, I realized how important it is for me to teach him about money management. While researching money-wise tactics, I decided it’s never too early to bring up the topic of retirement too. I’d love to see him able to retire early and really get the most out of life without financial stress.
To help teach these complicated topics there are many resources available including Genworth Financial. Since, I am no expert on these things, anything I can learn will be great to pass on to my kids. I want nothing more than to lead by example and show my kids that anyone can be empowered with knowledge.
I realize that at the age of 12, a lot of this is way too heavy to slam down on a kid. However, little seeds should be planted early and regularly in hopes that eventually this valuable information will sink in.
Oh, and by the way, we talked some sense into him! He no longer wants those extravagant shoes! 🙂 Setting up a goal board helped him visualize all the money it’s going to take for him to achieve his big dreams. Seeing his dream car next to a pair of shoes helped put things in perspective.
wow, that is a lot for a little boy. maybe you should buy a few really safe stocks. i remember reading where kids had bought coke or some other stock and held on to iot and it was worth enough to retire on when they got to the forties..
This is NOT too much to slam down on a kid. It’s necessary in today’s time, especially if your son is eyeing $200 shoes. I’ve been very fortunate that my son has caught on to my money saving tactics. If he wants $200 shoes, he’d better find them at an 60-80% discount and they better last a year and it will be the only pair of shoes he will get.
Everyone in my family and friends circle has been a grateful personal victim of my savvy shopping tactics and the leftover money they have as a result.
Teaching kids about money management should start when they start school. The goals board is a good idea.
Teaching kids about money is so very important. I love the idea of a goals board.
omg i would be so twitchy. $200 shoes. we’re not there yet- my kids are younger. but omg.
we do need to teach kids about money- and the VALUE.
my nephew always wanted $$$$ sneakers but when his mom (my sister) said hey! i’ll give you $50, you can pay the rest of what you want, he quickly stopped coveting the super $$$ sneakers.
I’m so glad you are taking the time to teach your kids about money! Often, people don’t talk about their money at all. We are very open with our kids about our money and worked really hard to work our way completely out of debt (excluding our mortgage) a year ago. Now, we are able to show them a positive example of how to live debt free and within your means.
$200 shoes would be a ton of chores around here. I honestly don’t know what chores I could come up with for my son to let him earn that much. Eek!
I remember wanting “THE” cool shoes in jr. high, but they definitely weren’t over $200! Wow! I am glad you talked some sense into him!
WOW $200 shoes…. would be a lot of chores at my house; My Teen is very saving savvy, he is already planning to retire at age 30…lol… he has a plan and follows it to the T .. well, we will see.. hope it works for him and I know you will make your son understand, too that this is A LOT of money.
Wow, he did pretty well for his birthday. If my child was to receive that much, I would probably have them put it in the bank to save for something big like their first car or college.