Savings Day – Teach Well – Limit Regret

Ever regret a purchase?

A friend recently confessed to wasting money on a collection of art that he thought would become valuable, but it didn’t. Now he’s stuck, and he wished he’d sought wise counsel. To prevent regret, teach your children to manage money. They’ll learn to give, save, and spend wisely. Here are my tips:

1. Start early by dividing their income, including money from birthdays and Christmas gifts into envelopes for giving, saving, and spending. When they’re young, I recommend they give a minimum of 10%, save 70% and have up to 20% in a spending envelope. Teach them the value of patience with spending. They’ll need it to buy gifts for others and for things they want. Praise their progress! 

2.  As they grow, allow them to begin covering their own expenses. You’ll have to adjust the ratios so they can cover a cell phone, a car, insurance, and gas. Let them buy their own clothes or things beyond the essentials. This signals that you trust them to be responsible while motivating them to work and manage well. Limiting discretionary spending may limit waste.

3. Also teach them to be faithful stewards. They observe how we handle money and learn earlier than we assume.

Don’t do for them what they can do for themselves. Your Generosity can handicap them. Bring children up in the discipline and instruction of the Lord. It will set them apart from their peers. They’ll learn to save, invest and seek wise counsel. while avoiding the regret of foolish spending.

And if credit card debt limits your ability to save, I recommend Christian Credit Counselors. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline at 800-722-1976 or visit online at crown.org/ccc.