Next to teaching your children how to walk with God, you will never teach them a more important life lesson than how to handle their money wisely. Dr James Merritt writes: ‘We began teaching our kids early these principles of industry, honesty, and responsibility. Here are a few methods we used, which I recommend to you.
(1) Give your kids some jobs early on without pay, such as making up their beds, picking up their toys, and cleaning their rooms. Inspect their room each time, encouraging them as much as possible, but also letting them know the standard of quality that’s expected (no sloppy bed, toys left on the floor, etc.). This will begin to teach them the value of work, the fulfilment of doing a job well, and the discipline of following the commands of someone in authority.
(2) As your kids get older, choose some jobs they’re capable of doing (polishing shoes, washing the car, vacuuming the floor, etc.) and settle on fair compensation. This will begin to instruct them in the value of money and reinforce the rewards of a job well done. Again, have an understood standard of quality that’s expected, and don’t pay them until the job’s completed properly.
(3) Don’t give allowances or teach your children to expect them. Rather, teach them that money is earned through working for it. There’s nothing wrong with giving your child money out of love or as a reward (such as for good grades), but kids must learn the relationship between honest labour and just compensation.’
Bottom line: those are three principles that will stand them in good stead throughout their entire lifetime.