Money Management and Pocket Money
Updated: Nov 6, 2018
This month we are discussing money management and pocket money. We’re talking about how prominent this topic is in the Bible, and because of this, how important it is to teach your children to have a godly perspective about money.
To be able to best teach your kids, it’s important that you have a solid, biblical understanding of money and finances yourself. First, above all, acknowledge that God owns everything. Paul said in 1 Corinthians 4:7 that everything we have comes from God: “What do you have that you did not receive?” Human beings are but stewards of what God has given.
When introducing money management to your kids, teach them this truth. Then, as you establish ways to help them manage their money, and perhaps initiate an allowance system, this will be what under-girds everything. When children want to buy something that may seem unwise to you, encourage your kids to talk to God about whether it would be a wise way to steward what is ultimately His (knowing that in their minds and heart they may truly believe God would want them to buy that tenth Lego set).
You can also assist your children in understanding the concept of tithing and giving. Acts 20:35 says, “It is more blessed to give than receive.” If you children receive an allowance, help them understand the importance of giving a certain percentage back to the church—but also how much joy giving can bring. Investigate some ministries that might be of interest to your child. Together, design a jar that can sit on the counter that your child can drop money into when they receive their pocket money. After the money adds up, help them send that money to a ministry that interests them.
Instilling these habits in your child from a young age will not only carry with them throughout life, but will change their perspective. Instead of thinking about what they want to buy with their money, they will begin to think of how their money is helping someone less fortunate.
I am excited for what you have ahead with your child. Teaching children about managing money wisely is one of the best things you can do for your child.
We’ve talked about managing money, tithing and giving, and how important it is to have God’s perspective of money. Let’s now talk about some creative ways to teach your kids, in a practical way, how to do this.
Delayed gratification, giving up today’s desires for future benefits, is a biblical concept. King Solomon, the wisest man who ever lived said, “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has” (Proverbs 21:20).
How can you help your child learn to save—in a fun way?
One fun way to help kids learn money management is to gather five or six plastic, see-through containers with lids and label them with a label-maker or a black Sharpie. Some ideas include: tithing, giving, spending, saving, and sharing. Find containers that stack well, so the footprint they take up is small.
Engage younger children by letting them decorate each container with stickers. You can use color-coded stickers for children who cannot yet read—then you can direct a child to “get some money out of the pink tithing jar!” Depending on the age of your child, you can have them help divide their pocket money up into each jar.
Once their “saving” jar gets too full, you can bring your child into the bank with you and open up a children’s savings account. Every time the savings jar becomes too full, take a “field trip” to the bank. Let them see how much money they are saving! Give them ideas for what they can save for.
There are also Apps available for your smartphone. P2K Money and Kids Money are great, free options. Each teach the child about saving and planning for long-term purchases. They help children keep track of income like allowance or payments for doing chores.
Kids love money, and they love buying things with money. The trick is to help them understand the wise way to handle the money they have. I am praying for you and your family as you venture into this fun area of money management. And it can be fun! Use your creativity.