Parenting tips
Life skills: The Value in a Penny
An important life skill to teach children is the value of a penny. Many young people enter adulthood not equipped to handle financial issues. How to budget and make financial decisions are critical life skills to master. Money management for kids is very important.
Why is this so important?
The Bible has over 2300 verses about money. Jesus had a lot to say about the subject as well. Approximately 15% of His preaching and 11 out of 39 parables were about money. He knew it was an important topic that we would struggle with. This is apparent when you look at marriage statistics. Some studies have shown that the #1 thing couples argue about is money related topics. Take it a step further and 21% of marriages end in divorce over money issues.
We can help our children be equipped to face this critical issue by teaching them the value of a simple penny.
Life Skills: The Value of a Penny
An example of this principle is… when you double a penny every day you would be amazed at how much you end up with after just 30 days. On day one you start with a .01 but as it doubles every day by 30 days you would have 5.3 million. That little penny is powerful.
A practical idea is to get a child an empty jar. When they express something they want, write it on a piece of paper and tape it to the front of the jar. As they find stray coins on the ground have them pick them up and drop them in the jar. When they do something worth rewarding give them a few coins and add to the jar. When the jar is full take it to a coin counting machine and cash the coins in. When there is enough money to buy what they want they can use that money to buy it.
This can also be a family project. Perhaps the family wants to go to a water park. Put a jar where everyone can get to it. Put the label, “Water Park” on the jar. Anytime anyone has change it goes into the jar with the understanding that when there is enough money the family will enjoy an outing to the local water park.
This teaches the value of small amounts of money adding up to more. It also teaches delayed gratification. The concept of waiting to buy something until you have earned the money to buy it is very important.
I have had jars with different things taped to them over the years. It is always fun to see everyone tossing coins in the jar. Everyone working toward a financial goal is also very bonding.
Life Skills: The Value of a Penny
One last parting point…
We do not need to have everything we want. So often we get into financial situations that are not ideal because we indulged a want instead of a need. Ask yourself, “Do I really need this?” It’s ok to buy wants but it is important that you actually have the expendable money to spend on that want!
So often as parents we want to give our kids the world. We want them to have what we didn’t have. Or perhaps we just don’t want to tell them no. But a child that gets everything they want will grow into an adult that has unrealistic financial expectations.
Teach your child the value of a simple penny, the value of delayed gratification, and the wonderful feeling of working for what you get.
