This week's #MoneyChat guest is Alisa T. Weinstein, author of Earn It, Learn It and @EarnMyKeep on Twitter. Alisa has a wealth of information to share about helping kids understand the value of money and how we as parents can shape their view of work early on!
Q1. #MoneyChat: Why do kids view their parents as bottomless ATMs?
Alisa: First off, money’s now digital. There’s direct deposit, online banking, ATMs—to kids, it’s like magic. You stick a plastic card into a machine and POOF! There’s money! It’s not like when we were kids and we’d watch our parents deposit their paychecks at the bank teller’s window. Another pitfall is our desire to give them everything they want. Parents have a hard time holding back because of so many reasons: working long hours, wanting our kids to have more than we did, even just “keeping up with the Joneses.” Unfortunately, indulging our kids too often can inflate their sense of entitlement.
Q2. #MoneyChat: What are some easy ways to help kids learn where money comes from?
Alisa: Make it personal! At dinner, bedtime or in the car, share one specific task or event that took place at work that day. (Did you have a big meeting? How did you prepare for it? Did your customer have a complaint? How did you solve it? Even better: ask your child what her solution would be.) Then explain that adults get paid for the work they do. You can also put your kid to work, adult-style: find a toy or game with a missing piece. Have your kid create a new piece to replace it—in his choice of style, color and material. Then pay him $1 for being a Toy Designer! You can replicate so many careers in this same fun way.
Q3. #MoneyChat: Why not just pay them for completing household chores?
Alisa: Chores are a great opportunity to practice basic life skills. But adults don’t get paid for making their own beds and folding their own laundry. So why pay kids to do it? Plus, paying for chores can negate the “team” atmosphere that occurs when everyone pitches in. Another big one is that paying for chores can send the message that work isn’t fun. Of course we know work’s not always a day at the park, but helping kids explore their passions—and learning one day they could get paid for it—can have a profound effect on their self-efficacy.
Q4. #MoneyChat: What’s the benefit of teaching kids about money and work early?
Alisa: We’re never too old to learn. But the earlier we learn, the more natural the experience is. It’s true for learning a language and riding a bike. Why not financial literacy? The sooner kids start to learn about money and work, saving, sharing and spending, the less they’ll likely labor with these concepts later. For them, responsible money management will be second nature—unlike for so many of us, who struggle to undo money mistakes and break unproductive money habits (NOT fun).
Q5. #MoneyChat: Does teaching kids financial responsibility strengthen more than money management skills?
Alisa: Y-E-S! It’s an exponential effect: teaching kids about money is not just about money. There’s goal setting, decision-making, self-efficacy and more—financial lessons can shape so many different facets of their lives in positive ways. Giving children the opportunity to be in charge of their own money is empowering. It gives them a sense of control and responsibility. And it helps clarify how hard Mom and Dad work to earn money, which ups their appreciation for what we do every day!
Q6. #MoneyChat: What’s the best lesson your parents taught you about money and work?
Alisa: That the work we do can be worth more than the numbers on a paycheck. And that a job well done is worth doing. Both sound cliché, but my parents enjoyed their careers, often sharing stories of their workdays with my brother and myself. And they were honest. I knew there were days my dad couldn’t wait to leave the office, and days my mom’s students gave her a hard time. But it didn’t diminish the message that it was worth finding a career doing something I enjoyed. Would love to pass that on to my own kids.
Q7. #MoneyChat: How can parents make working more exciting to children?
Alisa: Try (and some days it’s way harder than others) to stay positive. Remember that our kids are itching to know what it is we do all day. I still get a kick out of how something that seems trivial to me is exciting to them. And look for ways to let kids experience working, hands-on. Bring your kid into work for a half-day. Or give your child one of your projects and see how she’d solve it. Help your child interview an adult who does what she’d love to do one day. You’d be surprised how many professionals love to talk about their jobs with kids.
Q8. #MoneyChat: What’s the most surprising thing a kid has said to you about working for money?
Alisa: I’m less surprised by the kids than I am by the parents—I’ve received many wonderful notes from those who never thought their children would be interested in earning money by tackling an Earn My Keep career! One of the best was the mom who said her daughter wanted to be pinched, because she thought she was dreaming. But when you position work as a positive experience, and see that little light bulb go off in your kid’s eyes, it’s a welcome reminder of just how satisfying the real world can be.
