A Child and His Money

A young man in his early thirties told me how he had been handicapped in learning to handle money. His parents had been responsible for the finances to cover his expenses of growing up; feeding, education, clothing, travelling and other personal needs. Whenever he needed something, he just told his parents, who then made the exact amount of money available. Honestly, the boys wants had been supplied like any loving parent would do. In the mean time, he had not learned how to handle money on his own. At the time he was about to get married, aftermath the troubling highs and lows in his finances, as he was termed independent of his parents provisions and ready to handle life on his own, the question in his heart was How can I learn to manage the affairs of a home? Seeing clearly he could not manage even his own affairs, he thought to himself, I hardly know how to make financial adjustments, much less how to plan a household budget for the week or the month. This goes a long way to show that the value of money should not be underestimated, even when dealing with a child. It takes human effort to earn money. Therefore, money is life; to the extent that if money is lost or wasted, the part of life which it represents is wasted. In other words, besides the gains that are intangible, the period of a lifes span directly dedicated to earning a particular amount of money can be said to be wasted if the use of that money is wasted. In most cases, one would have to put in an effort that is quite the equivalent of the effort that earned the money in the first place in order to earn that same amount of money again. Simply telling a child about handling money will not develop his ability to use it correctly or wisely. The aptitude for handling money comes only by trial and error, and it is best for the element of error to occur while the child is young and still learning and while the amounts of money are small. Neglecting this fact when the child is still at a tender age sets the stage for lack of control of money when he is older. In most cases, this turns out to be a challenging learning experience as the adult soon learns he is always in need of more money; a continuous battle rages within him to be content. Starting Point in a Childs Money Handling Training The best starting point in teaching a child to handle money is for the parent to ask the child to do some small errand which involves making a purchase. The child can be given a small amount of money and be told how much change he should receive in return. This produces personal confidence and also helps the child to learn the value of various denominations. The program of helping a child to understand the use of money must be carefully regulated according to the childs age and ability to carry responsibility.

Allowances One of the commonly used tools by parents for a childs money management training is personal allowance. Many parents give the child a stated allowance each week or month. This allowance should not be used to bribe a child to be good but should be handled as a business transaction. The child may have to give accounts at some point. At the time arrangements for the allowances are made, it should be stated whether it is for specific purposes, if so, the child assumes responsibility for using it accordingly. In making such an arrangement, it is most important that the parent fulfil carefully and promptly his part of the agreement; they should make the stated allowance available exactly at the time it is suppose to be available. They should not fall into the habit of making excuses for non-payment, nor should the allowance be cancelled as a means of punishment. Nevertheless, due adjustments can be made along certain lines of discipline for the child. As the child gets older, the allowance should be increased as well as the list of items for which the child is to spend his allowance. Eventually, as a child reaches teenage hood, the allowance should be large enough to make purchases of his regular clothing as well as other routine items that a child needs. Thus, the parent is not spending more money in the care of the child than would be spent ordinarily. Naturally, the parent should plan with the child how he is to spend the money for his more important purchases. As the judgement of the child improves, he should carry more and more responsibility, even to the extent of being allowed to purchase articles which are of a different colour or quality from those the parent would prefer. Thereby allowing him the freedom of personal choice and taste. Only thus, can the child be taught the importance of making wise decisions. It is not wise for a child to be allowed to borrow against the allowance of the next week. They should be required to live within their income or cut their coat according to their cloth and not their size avoiding the pain of indebtedness and overspending. It is usually not long until a child discovers that his regular allowance does not cover all the purchases he would like to make. His problem gives the parents the opportunity to instruct the child if he is now sufficiently mature, on how he may obtain part-time employment and thus increase his income over and above his monthly allowance. Although, a family may have sufficient money to support their children ten times over, still such pursuits teach growing children in an excellent way the value of money in terms of how much work is required in order to receive a naira in return.

Rules for Parents Dos Donts

Allow a child much freedom as possible Do not deep your hands in your childs in the choice of things he purchases allowances or rob your childs savings Do not neglect to pay his allowance Plan with him regarding the handling of exactly on time except for lesson his money purposes such as encouraging him to save. Commend him when he uses good judgement in handling money. Likewise, constructively critics him when he uses poor judgement in handling money. Do not threaten to cancel his allowance as a means of punishment

Warn him about borrowing money to Do not require him to turn over his make purchases before he can afford the savings/earnings to you items Encourage him to build up a small savings account Do not pay allowance money before the due date

Enlighten him about available investment instruments (such as stocks, Do not impose your purchase or bonds, real estate, funds, commodities, investment decisions on him etc) as he matures

Adapted by Nwaiku Ekule from:

Your Health and You (Volume1)

by Harold Shryock, M.D. and Hubert O. Swartout, M.D, Dr.P.H. The Stanborough Press Limited, Alma Park, Grantham, Lincolnshire, England.