Dear Parents,
 If money makes the world go around, how does a parent go about teaching Junior to use money wisely and responsibly? We cannot donate a gene for this. Money management has to be learned from experience and even a few mistakes.
It is amazing to see a toddler at the grocery store enthralled by Mom’s wallet. It is almost instinctual to sense that there is something special about money and its power. You know that the first time you tell your child he can’t have whatever treat is requested, and explain that you do not have the money for it, or that it is not worth the price. Nowadays, most parents will spontaneously hear, “Well, just charge it or use your MAC card.” What has happened, as with most things, is that Junior has been watching you.
Three years old is not too early to start learning money management skills. Begin by counting coins. Teach your child the monetary difference between a quarter and a dime. Then, give your child a chance to earn a whole dollar. Put a chart on the refrigerator and every day, after his toys are picked up, give him a dime and tape it to the chart. At the end of 10 days of earning, give him a dollar for the ten dimes. And, if you are a real softie, give him the dimes too! Buy a piggy bank and let him save his money.
 Now, the next challenge. Go to your child’s favorite store and help him pick an item he really wants that you think is worth the price. Explain how many dollars, dimes and quarters equal the price. Then, help him save for it. If he uses his money for something before he has saved the amount, explain to him that he has to start saving all over. What you should not do is buy it for him anyway. Give him the opportunity to see how good it feels to buy something with
his own money.
A good time to open a savings account for your child is when he/she is between five and 10 years of age. Let him make his own account deposits and withdrawals. Occasionally, let him use his own money to make that worthless purchase and see how it feels to make a money mistake.
Now is also the time to set up a chore list and a description of how to earn money. Keep in mind that not everything should be financially rewarded. There are things he has to do just because he is a member of the family.
Teenagers are consumed by what their friends wear, buy and do. Do not be surprised if you hear, “I have to have that because so and so has one just like it.” Teach them to comparison shop. Go to the mall and pick out a shirt at the “in” store and one of similar quality from a more reasonably priced store. Help your child figure out if he really wants one expensive shirt when he could get two for the same price. Again, do not buy the expensive one just to be nice. Keep your eye on the fact that we all have to learn to manage and live within our resources.
Late adolescents are tough creatures. They are sure their folks are totally out of touch with everything. Have those discussions about the expense of cars, insurance and college. Encourage after-school jobs and keep that savings account going. Stress success in school and higher education as a means to financial independence.
Most diets do not work because they are too restrictive. For your child’s “money diet,” remember to build in flexibility. Talk about what portion of gift money is for fun and what portion should go into the bank. Be clear that you will meet his needs, but that he should provide for some of those “wants.” Continue with an allowance, but definitely make it a reward for responsibilities. Remember, most people will never be rewarded just because they are cute.
JEANNE K. WEINTRAUB, R.N., M.S.N
MANAGER OF THE AMBULATORY CARE CENTER
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