tool Finances: A Family Affair Susan E. Murray Associate Professor Andrews University Berrien Springs, Michigan
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ive children in the family. A mom and dad who knew education, at its best, addressed real issues. There were no secrets about money. No ATM mentality. These kids came to academy having learned how to manage the family’s money. They knew how much money there was, as well as the values of their parents in paying tithe and offerings. These kids knew how to write checks, balance the checkbook and justify the bank statement. Wow! It should have been no surprise that they were responsible and resourceful in many ways. Considering economic conditions, the time is ripe for parents and grandparents to actively share their money management skills with their families. Rather than filling children with fear about what they can’t have or may loose, how about getting them involved in productive ways?
Susan E. Murray is associate professor of Family Studies and Social Work at Andrews University. She is certified by the National Council on Family Relations as a Family Life Educator and is a licensed marriage and family therapist. She and husband Don will be celebrating their 46th wedding anniversary in August. They have two adult children, Marci and Ryan. They are also grandparents to Cassie, Alex, and Hana. Professor Murray comments,“Having spent 42 years as a residence hall dean’s wife, I’ve baked about a million chocolate chip cookies!” She enjoys and spends some time each day reading for pleasure.
Children from preschool age on can be productive money managers. They learn very early whatever we as parents are willing to teach them. Our children have an innate ability to absorb massive amounts of information, all of which helps shape their personality. You might want to think about it this way. If kids can learn healthy habits like washing their hands before dinner and brushing their teeth after they eat, then they certainly can learn the important habits of good money management. Just ask yourself, “Would I wait until my child had all of his adult teeth before I started to teach him to brush?” It’s a habit all parents try to instill in their kids. Why? So that when they get older, they can look after their own teeth! Michael Desilva (KidsWealth.com) suggests the same analogy applies to managing their money. If they learn how to manage money when they are young, they will have that skill─and continue to hone it for the rest of their lives. He further suggests that rather than handing out money as kids ask, and according to our present mood, that parents ask themselves, “Of all the money we have spent so far on our kids, what did they learn about money other than ask Mom or Dad?” He says that giving a kid $2–$5 a week to spend merely teaches kids to spend! He suggests that it’s when you give them an amount each month that is in direct proportion to your income and lifestyle that it will have real meaning to them. Desilva has developed a “kids pay” money management system for families: • 30% goes in their WEALTH Account—this is their investment account. This money is never to be spent, only invested in various ways to grow their wealth. • 20% goes in their PLAN Account—this is for your kids to be able to plan for and purchase more expensive items like a bike, computer, etc. • 20% goes in their LEARN Account—your kids use this money to buy books, educational toys and games, trips to museums, parks, zoos, travel or anything that is educational in nature.
SCRIPTURE: 1 Corinthians 4:2
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July-September, 2009
• 20% goes in their FUN Account—this is your kids spending budget for the month for toys, games, movies, popcorn, snacks, or treats that they buy on their own with their own Fun money. • 10% goes into their ANGEL Account—this is their charity account, money to be used every month to donate to charity, tithing at church or helping others in their community.
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