Home School Heartbeat Radio Program

Many people consider childhood a sacred time that shouldn't be burdened by such things as money worries. But it is possible to teach healthy attitudes about money, even during the "lean years." Mike Smith tells you how on today's Home School Heartbeat.

Mike Smith:
Most young children are unaware of the link between a parent's job and the money it provides to meet the family's needs. The concept of earning money can be understood at an early age. Take your young child to visit a parent at work and explain the reason for employment. Give him a chance to see that holding down a job is something that responsible adults do.

To take that lesson one step further, give your children an opportunity to earn money. It is not necessary to pay a child for cleaning his room or other tasks that should be considered necessary for household operation. But you can provide a list of special tasks, like washing the windows or raking leaves, that can earn a little bit of pocket change. As the child gets older and income opportunities arise outside the house, help them set up an earnings record book to keep track of earnings and expenses. Apply their math studies to help them calculate a break-even point.

By giving your children opportunities to earn money, you are not only teaching them the principle of responsibility, you are giving them their first opportunity to make financial decisions. They will now have the ability to use the principles of effective spending that we discussed yesterday. You will also give them a springboard into our next lesson on saving.

And until next time, I'm Mike Smith.