Financial Ed for Kids

01/13/22 • 24 min

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29 We all want our children to be pure and upright in their walk with Christ, and that certainly includes how they manage money. Today on MoneyWise, we’ll discuss several ways you can help them do that! After sharing the Gospel with your children, one of the most valuable gifts you can give them is teaching them God’s financial principles. Children need to learn that you work hard for the money that supports the family, that you’re not an ATM machine with unlimited funds. They need to work as well to receive material rewards and the satisfaction that comes with doing a job well. They need to learn how to budget and spend carefully because there’s never enough money to do or buy everything we want. They need to learn how to save, not just for rewards, but to cover unexpected expenses. And most importantly, they need to learn how to give, to be generous to God’s Kingdom. A recent article from the secular financial websiteHumble Dollarcaught my eye because it lists several strategies for teaching wise money management to children. SHARE THE BIG PICTURE WITH YOUR KIDS Share many of your expenses with your kids to help them get an idea of how expensive things are and what it takes to provide. Show them your mortgage and car payments and your weekly grocery costs. You might also show them your retirement account statement. That can give them a sense of how important it is to save for the future and how much time and effort it takes to build up a nest egg. MANAGING CREDIT Managing credit wisely is another extremely valuable lesson for older children. When they head off to college, they’ll be inundated with credit card offers. Far too often, they fall victim to this and run up consumer debt on top of any loans taken out for education. Teach them about creditbeforethey reach college age. You could make them authorized users on your credit card, but a better way might be to open asecured credit cardaccount for your teen. PLANNING AND ALLOCATING MONEY A three-jar system is a time-tested tool. That’s one jar for saving, one for spending, and one for giving. But you can take that a step further. Have your children put some of their own money in the collection plate each Sunday. The earlier you teach them to be generous to their church, the better! TAXES Another valuable lesson for kids is that they’ll have to pay taxes, maybe sooner than later. If your teen has a job, the employer may withhold taxes. That means the child will have to file a return even though they may not have to pay taxes. You would probably use the 1040EZ form, but filling it out with your child would be an eye-opening experience. Impress on your child the importance of being scrupulously honest about money owed to the government. Romans 13:6-7 reads, For because of this you also pay taxes, for the authorities are ministers of God, attending to this very thing. Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed. SAVING FOR BIG PURCHASES The last money lesson for your kids involves saving for and buying major purchases. This is a great way to teach budgeting. Help them set up a saving plan where they are at least providing some portion of the money needed for the purchase. The percentage isn’t important. The main thing is to have the child participate in the purchase with their own money. The same principle can apply to long term saving. Set up a 529 education savings plan or a Roth IRA for your child and then you can offer to match contributions. This would teach the value of delayed gratification. LISTENER QUESTIONS On today’s program, Rob also answers listener questions: ●How should you manage funds in your 401k asyou near retirement age? ●Should you continue paying a mortgage in retirement or sell and rent? ●What are the costs andbenefits of a revocable living trust? ●How do you determine if it’s best to refinance your mortgage or pay it off? ● Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

Previous Episode

The Boy Who Cried Wolf With Jerry Bowyer

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29 The boy who cried wolf has nothing on some of the financial alarmists crying wolf today about the economy. Is our banking system on the brink of collapse? Are we headed for hyper-inflation? Economist Jerry Bowyer joins Rob West today to help answer those questions. MoneyWise contributor Jerry Bowyer is the financial editor atTownhall.com and author ofThe Maker Versus the Takers:What Jesus Really Said About Social Justice and Economics. Some analysts are quick sound alarms about impending doom just around the corner. Others deny the very real risks and challenges for investors. The truth is usually somewhere in the middle. Today, Jerry Bowyer addresses talk of possible looming hyperinflation. He says that while he warned about inflation before most in the media were discussing it, some of the dire warnings currently circulating online are overheated and, at least for now, unwarranted. He also explains why he believes there is very little reason to worry about the stability of the U.S. banking system. And he addresses the concerns of those who feel it may be time to pull their money out of the stock market altogether. Bowyer also discusses the advantages and disadvantages to possible hedges against changes to the value of the U.S. Dollar, including precious metals and cryptocurrencies. LISTENER QUESTIONS On today’s program, Rob also answers listener questions: ●When does it make sense to pay off your home when nearing retirement? ●How do you know if you retirement plan is on the right track? Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

Next Episode

Planning Your Generosity for 2022 With Sharon Epps

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29 Isaiah 32:8 reads, But he who is noble plans noble things, and on noble things he stands.Being generous to those in need is certainly a noble thing, perhaps second only to sharing the Gospel. But our giving is more effective when we plan for it. Sharon Epps joins Rob West today to discuss planning your giving. Sharon Epps is the chief operating officer atKingdom Advisors, the parent organization of MoneyWise Media. Proverbs 11:25 tells us,A generous person will prosper; whoever refreshes others will be refreshed. Today’s program originally airs in January. This is the time of year when many of us make plans to eat healthier, exercise more, and achieve other admirable goals. But how many of us create a plan for our giving? While you might have included your intended giving amounts in your budget or spending plan, there’s much more to a giving plan than just a number. Remember the acronym L.I.F.E. Labor Influence Finances Expertise LABOR:Ask yourself, What skills do I have that others might benefit from? Example: Can you build things? Do you sew? Are you a great cook? How can you give from your skills and labor? INFLUENCE:Ask yourself, What relationships do I have that might benefit others? Perhaps you don't have the particular skills that suit the needs of the person, family or ministry you’re helping. Do you know someone whocouldhelp? Think through your sphere of influence and consider introducing the party in need to someone who can help. FINANCES:Ask yourself, How much can I give this year, or Am I prepared to give sacrificially? Or how much should I keep? Some families find it useful to set a progressive target for giving.They ask the Lord for the ability to increase their giving 1% each year. If they are giving 5% now, they move it to 6% the next year. Or if they are giving 15% now, they make it a goal to give 16% next year. EXPERTISE:Ask yourself, What knowledge or subject matter expertise has God given me? Brainstorm ways you can use than knowledge and expertise to benefit other people and ministries. CREATE A WRITTEN GIVING PLAN Now it’s time to put your plan in writing. The first thing you should do is write down the values and beliefs that guide your giving. Next, establish an annual giving goal and a lifetime giving goal. Also create an annual volunteering goal. How will you use my labor influence and expertise? Your written giving plan should be the place to start.As you identify those areas of labor, influence and expertise that you have to offer, begin asking God how you might use these gifts. 3 PRACTICAL IDEAS FOR RESEARCH Here are a few tips for coming up with ideas: - Check with your pastor or church leadership. They often have or hear of needs that aren’t made public. - Contact the executive director of nonprofits you support, tell them your skills and when you have time to volunteer.See if they might be a match or if they know of another organization. - Last but not least, PRAY! Ask God to bring needs to your attention and show you how you can help. LISTENER QUESTIONS On today’s program, Rob also answers listener questions: ●How do you prepare for the future in light of A mounting national debt and global economic insecurity. Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.