One thing I know for sure – and you’ll hear me say over and over again is this: It’s never too early to start talking to your kids about money! I try to find spontaneous moments in my daily life where I can share with my kids about money. But, I try to teach them about money in a more structured way, too.
One way my husband and I do this is by holding Family Money Meetings. These meetings are designed for us to discuss and explain to our kids the process of earning money, spending money, and saving money.
What is a Family Money Meeting and why should we have one?
We had our very first family money meeting when we first introduced our kids to our chore and money system. The meeting was to discuss the new process and to make sure everyone was on the same page. We also wanted to get them excited about it.
We encouraged them to propose their own ideas or input into the new process and you can do the same with your kids. The more involved they are, the more likely they are to stick to the plan. If their ideas make sense and you can accommodate it, add it.
We now incorporate these Family Money Meetings into our schedule every few months to check in on the process and make sure everything is still working for everyone. We will also call a meeting sooner if there is an issue that needs to be addressed or a system that needs to be changed.
Here are 5 things we discuss at our Family Money Meeting
Rules
The first thing we need to discuss with our kids in a Family Money Meeting are the rules! The kids need to know what is expected of them. This should be very clear, down to the days things will be done and to what standard they will be completed. The more clear you can be about expectations, the more likely your kids will be successful.
Ramifications
Next, you need to discuss consequences. Discuss ramifications for things not being done, i.e. lose money and screen time. Be clear to explain that in the real world, people get fired if they don’t do their jobs.
Pay Day
For this topic, you want to let them know exactly what day each week they will be paid. Also, discuss what will happen each payday (see below).
Money Banks
After you talk to your kids about their pay day, you want to make sure they have a clear plan for what they will do with that money once they are paid. We suggest setting your kids up with three money banks: one for savings, one for spending, and one for sharing. You want to explain the three types of money banks they will have and talk about how they are different.
Once they receive their pay, they will be expected to divide up their pay into the 3 money bins. I leave it up to them to decide where their money goes but the only thing I do reinforce is that something has to go into each bin. You could make it so that it’s a standard % like 40/40/20 or any variation–really it’s up to you. Keep in mind that you will want to pay them in denominations that would be easy for them to divide, whether it’s quarters or bills.
Tracking
Next, you’ll want to talk to your kids about keeping track of how much money they have in each bank. Explain to them that each time they add in or take out money, they will need to track it. This is so they will always know how much money they really have. Then they can properly decide whether they can afford that new toy or not.
In the beginning and depending on their age, you will be more involved with helping them figure this out or be supervising. This is to make sure they understand what to do.
Struggle with staying on top of your bills and budgeting?
Do you stress out and dread when the 1st of the month rolls around?
Tired of living paycheck to paycheck?
Have constant arguments with your spouse around the family finances?
Have no clue on how to even get in control of your financial life?
Download this FREE Monthly Budgeting Action Plan, which includes Worksheets with step by step instructions on guiding you exactly on what you need to do to set up your own family budgeting plan that works for you and your family.
Struggle with staying on top of your bills and budgeting?
Do you stress out and dread when the 1st of the month rolls around?
Tired of living paycheck to paycheck?
Have constant arguments with your spouse around the family finances?
Have no clue on how to even get in control of your financial life?
Download this FREE Monthly Budgeting Action Plan, which includes Worksheets with step by step instructions on guiding you exactly on what you need to do to set up your own family budgeting plan that works for you and your family.
Do you struggle with getting your kids to clean up their room?
Are you ready for your kids to be more responsible?
Would you like your kids to be able to manage their time better?
Ready for a simple way to teach your kids good money management habits?
Download this FREE Family Chore and Money System Action Guide. It includes worksheets with step by step instructions on guiding you exactly what you need to do to set up your own chore, schedule and money management plans.