Pastor Al Paulauski, From Your Pal Pastor Al, Fair Haven Assembly of God Church

Pastor Al Paulauski

From Your Pal April 2006

"The Mystery of Money"

Did your parents ever say to you, "Money doesn't grow on trees?" If you are like most, you have probably heard this saying more than a hundred times as a teenager. However, it seems as if today we need to approach this subject from a totally different point of view. A while back my son Caleb and I were out running some errands as we normally do on a Monday. Caleb, as he usually does, asked if we could go to McDonald's for lunch. As much as I have grown to hate that place, I was willing, but had one problem. I was out of cash. As I shared this fact with Caleb I was taken back by his response. He said, "Daddy, let's just go to one of those machines where they give you money." My son at the age of five had caught on to what an ATM machine was. It was very scary. Today, we don't teach our children that money doesn't grow on trees, we have to teach them that money doesn't come from ATM's or lottery tickets.
As we have been covering this series on Sunday morning titled, "Finding Financial Freedom," it got me thinking. Where do we begin to develop our thoughts and values on money? The answer is - when we were children. Most likely, our parents instilled in us an attitude towards money. So, in reading an article by Terry Savage called, 7 Steps to Teach Your Kids the Mysteries of Money, I thought I would share with you five of them.
1. Treat your own money with respect. If you bend down and pick up a penny, your children learn that even small amount are to be treasured. If you carefully consider the price of a purchase instead of just saying "Charge it," you instill a sense of value in those watchful eyes. If you count your change instead of stuffing it in your wallet, your children will learn to be careful with their cash as well.
2. Let your children make money decisions from an early age. Don't' use an allowance as a way of avoiding daily cash handouts. Sit down and work out a budget for your child based on his or her necessities. Build in enough extra for some discretionary spending and then allow your children the benefit of saving for big purchases vs. spending money on small stuff they want right now.
3. Give your children an attractive alternative to spending. Discuss with your children how depositing your money in the bank benefits them in the long run. Explain to them how interest works in a way that they will understand.
4. Make sure your children understand the connection between work, paychecks and taxes. Although it's not advised to share the entire family budget with your children, it's never too early for them to watch you sort out your spending and investing decisions. Let them know that the hours you work translate into the dollars you can spend. Be sure to give them some idea that the government takes about one-third of your earnings in taxes.
5. Encourage your children to get some work experience. When your children are at an appropriate age allow them to walk the neighbor's dog, baby-sit, wash cars, or whatever else they can do to earn some money. By the time your child receives a paycheck the concept of spendable income vs. savings will become very real.