Money Matters

Six- or 7-year-olds are ready to start handling money of their own, says Kiplinger's Personal Finance Magazine.

Help your child discover responsible money management using these discussion-starters:

•Talk about stewardship. What does stewardship mean to you? Ron and Judy Blue, authors of Money Matters for Parents and Their Kids (Thomas Nelson Publishers), say that "God owns it all." What does that mean? If you owe everything to God, how much should you save? spend? give away?

•Talk about financial decisions. Discuss requests you receive to give money to the poor, missionaries or the church. Together, make decisions about particular needs and how much to give.

•Talk about tithing. Read 1 Corinthians 16:2a: "On the first day of every week, each one of you should put aside money as you have been blessed" (NCV). What is a tithe? How much should you give?

ALL I WANT
Help your children develop healthy attitudes toward giving and receiving gifts with these ideas.

•Teach kids to value the giver—not the gift. It truly is the thought that counts. Reinforce this to children by praising the act of kindness. Have children write thank you notes focusing on the thoughtfulness of the giver. Even toddlers can draw a thank you picture.

•Teach children to give generously. Anonymously "adopt" a needy child in your community for an entire year. Talk to your pastor or local health and human services agency for assistance in setting this up. Your family can send cards of encouragement or small gifts throughout the year. Let your children use their money to help pay for the gifts. Make a family commitment to pray for the child throughout the year.

STEWARDSHIP SAAVY

"The earth is the Lord's, and everything in it, the world, and all who live in it." Psalm 24:1

Allowance is an effective tool to teach your child about money management and the principles of stewardship. Follow these guidelines to help lay a financial foundation for your child.

The average weekly allowance according to a survey by Kids' Money (www.kidsmoney.org) is: $3.85 for 6-year-olds; $5.52 for 9-year-olds; and $9.58 for 12-year-olds. Decide how much money your child needs in relation to how much allowance your family can afford to give.

Decide what responsibilities are required to earn an allowance. Some families don't believe in paying children for basic chores is just part of being a contributing family member. Other families withhold allowance for chores not completed. Your family must decide what works best based on your family's values. Set guidelines for payment schedules and conditions so your child knows ahead of time what's expected.

Teach your child how to budget money. Larry Burkett, founder of Christian Financial Concepts, recommends the following guidelines: giving—10 percent; saving—50 percent; and spending—40 percent. Help your child follow these guidelines each week to establish consistent budgeting habits.

Teach your child what God's Word says about stewardship. Read aloud and discuss with your child Matthew 25:14-30 (parable of the talents); 2 Corinthians 9:6-7 (cheerful giving); and Philippians 4:11-13 (contentment). These verses give us the foundational principles that God expects us to live by.

Model stewardship. Let your child see you giving your time, talents, and treasures. Set the standard that your family gives thanks to God in all things (1 Thessalonians 5:18). Foster an attitude of gratitude for God's goodness.