Working it Out - Teach Your Kids How Money is Earned for the Family

One of the most fundamental financial lessons your kids are going to have to learn is about how you work for your money. Do your kids understand that every time you pull money out of your wallet or swipe a card to pay for a purchase, that money is directly linked to the time you put in at your job? Do they realize all of your money is earned through hard work?

Here are some talking points, conversation starters, and real examples for kids of any age level, to help them understand this concept.

• What is your day like at work, when they are at school or daycare? Are you in an office, spend a lot of the day driving, or working on a job site outdoors? Paint the scene of your day for them so they have a visual of what you do when you aren’t at home.
   

• When we buy pizza, groceries, toys, or clothes, where is the money coming from that pays for it? The swipe of the debit card is linked to real money that is in your checking account from your paycheck.
   

• In addition to all the fun things like food, toys and clothes, do they know about the other bills that you pay to keep the lights and water on, among other things?! There are some things that may have to be saved up for because you have other obligations that require some of your paycheck money.
   

• Why do we work and what made us choose the industry we work in? How much schooling or training did we do to get our job?
   

• When mom or dad work long hours every week, is the money earned spent right away or do we save up for vacations and college in the future?
  Working it OUt

• Would you still want a toy, gadget or clothing if you had to work a week to pay for it? Gauge the cost of things versus the number of hours worked to purchase it.   
   

• If you had the choice to work 16-hour days for double the salary of an 8-hour day, would you? This will mean that you wouldn’t be able to do fun things as often because you would be working most of the day.  Discuss the balance between work and play.

This is also a great time to get your child in the habit of saving. It will  benefit them in the future if they know to automatically save a portion of what they earn when it’s time for them to work for their own money.