Lessons About Money

By Carol Chandler
Contributing Writer
Union County Post

Carol Chandler

My husband and I spent our child-rearing days strapped for money. Being young and uninformed, we tried to shield our kids from our trials and tribulations about getting the bills paid and keeping our credit rating up.
We thought we were doing the right thing. "As anxious as we are, we don't want them to worry. They're just kids and it's our job to manage the money," we agreed.
Years later, and a little wiser, we realized they would have probably felt more empowered had we made them part of the team and involved them in our strategy sessions. They could have been part of the problem-solving process.
Now with the sudden rise in gasoline and food prices, we have the opportunity for many families out there to involve their kids in searching for ways to save some money.
This is a good time to share what's included in the family budget. Sit down with the kids and show them how you make up the budget and exactly where the money has to go, saying, "Well, kids, since we are all in this together, where can we save some money? Do you have any ideas about how we can drive less, buy different kinds of food, or put off some purchases?"
You may be real surprised about the answers. And in some families, parents may find out how spoiled their kids actually are.
Another idea is to have the kids help make up the grocery list. Put them in charge of policing your shopping, saying, "Okay, guys, which one of you is going to carry the list, check off the items, and make sure that I don't do any impulse buying?" What a good way for your kids to learn and to feel much more capable!
Many parents wonder if it is a good idea to loan money to their children. For parents, it seems logical that if your kids will need to know about loans as adults, they need some practice along the way with small loans.
Jan proudly told her friend that she had just repossessed a $189 camera from her son.
"Oh, that's terrible. How could you ever do that?" responded her "My son was really lucky," said Jan. "We make loans to our son just the same way the bank does it. Now, at age 12, he understands all about collateral and the responsibility of paying back his loans. Compare that to my neighbor's 21-year-old kid. His parents always let him off the hook for his loans and he had to learn when the price was higher. The finance company just repossessed his $17,000 car. I think my child got a real bargain. Don't you?"
Will your kids experience the joy of abundance or the devastation of debt? Teach your children how to solve problems and help them gain the confidence and capability they will need to meet life's financial challenges. Avoid the guilt of having to rescue them later when they should be financially independent.
Carol Chandler is Union County Extension Educator, Family and Consumer Sciences and County Extension Co-Director. She can be reached by email: chandler.4@cfaes.osu.edu or by calling 937-644-8117 or 800-589-8584. The OSU Extension website is http://union.osu.edu/)