Babes and Money

I’ve found it’s best in life. To keep things simple. Especially when it comes to my Babes.

And I’ve learned that it’s never too young to impress upon them the importance of financial literacy. While they may not need to know all the details of family finances, they do need to understand where you stand in terms of being a good steward of your money. And more, importantly, they need to see you live that message in your life with integrity and discipline.

So when my Babes were young, I started with the basics. As soon as they understood the value of coins, we played a game. If they found spare change, they could bring it to me. And if they could count it, they could keep it and put it in their banks. This was a simple way to get them curious about money and the importance of keeping it in a safe place.

Often, my mom would come over and let them empty out the change section of her wallet. And they would scour the couches and car for loose coins. It became an adventure and a source of pride to both find and count the money. The very best learning always starts with fun.

As their interest developed, I made sure they saw me regularly using coupons at the grocery store and restaurants. Impressing upon them the value of a dollar and how every little bit saved mattered in big ways. I also showed them the importance of buying items on sale. Reminding them that paying retail wasn’t the best option. And when I paid with a credit card, I made a point to remind them that it was not “free cash”. That a credit card was for convenience and that my cash in the bank paid the balance in full each month. I also impressed upon them the importance of never carrying a balance on a credit card. If I couldn’t afford to pay it off monthly, I shouldn’t be spending it.

These were the daily conversations that always had a place in our home. It was conversational, situational, and deliberately talked about on repeat. But these teachable moments came from the daily discipline I showed them with my own money. And I believe those daily lessons set an early tone for our “want vs. need” conversations (see previous blogpost) and our philosophy on money in general.

So as the Babes began to collect coins and receive birthday money, I knew that it was time to show them what to do with the money they were saving. So I bought each of them a small, three drawer, plastic container to teach them to “give a little, save a little, and spend a little”.

I taught them that giving was important and should be a priority. And we started with the notion that the first 10% should be set aside for tithe at church or (later on) charitable giving. Then, from the rest of their money, they could decide about spending and saving. Spending money was for short term purchases. While saving was for long term purchases and/or investments— like college. And we talked at length about what was an appropriate amount for both. In our family, that looked like at least 50% going to long term savings before any spending. And with their leftover money, they were free to choose their purchases.

Sometimes, they felt good about what they had bought, and other times they realized what had been wasted. But each experience was a lesson learned and an opportunity to correct course or stay the course. Later on, when regularly earned money was consistent, bank accounts were opened—a simple savings account where they could watch their money grow. A place where they knew it was protected and meant for long term growth. And because so many conversations happened at such a young age, they never felt deprived of spending. Saving and giving just became a way of life.

They began to understand that money was hard earned and that with their own money came great responsibility. And as they aged, I noticed that even when they earned their own money from jobs. And they were able to independently decide where their own money would go. They were still careful about their spending. Aware of what a dollar meant. Able to understand that delayed gratification mattered for long term gain—even if short term fun took a small hit.

And, friends, don’t get me wrong. This is a just broad overview of the day in and day out financial discipline that was built upon year after year. And as with anything in parenting, I firmly believe that what I did had a much stronger impact than anything I actually said. They witnessed these lessons played out over and over again in real life as we bought and remodeled homes, saved for college, purchased large items with intention and purpose, tithed at church, and gave to charities. They watched me at the grocery store with paper coupons, and they still laugh today when I pull out a $5 coupon for El Rancho Grande. But each financial decision impressed upon them the notion that money was not to be wasted or taken for granted—even the smallest amounts.

So, friends—try not to think of the big and sometimes overwhelming picture of overall financial literacy. Just start small today. And if you need to start with you and your own finances—well, there’s no better time than now. Because raising financially literate Babes starts at the most basic and simple level. And one day, I’d like to think they’ll thank us for it.