Parenting Tips for Financial Freedom
with
Charla McKinley
This year Charla McKinley of The Artisan of Adulting and Beyond Personal Finance joins us as a featured columnist. Providing practical help for teaching finances, Charla shares tips for parenting that instill financial wisdom in children and teens in a natural way
Encouraging Gratitude Through Financial Responsibility
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s determined as I was to counteract it, my son developed an attitude of entitlement. As soon as each “gift-giving” event was cleaned up and the gifts put away, I inevitably heard, “What’s next?”

So, how did I pull the plug on his attitude and open his eyes to the bigger picture? To help him learn to be thankful instead of constantly looking to the next gift?

I stopped being so generous.

Wait, what?

Yes, I learned the hard way that my generosity had led to his sense of entitlement. I mistakenly thought that he would appreciate my philosophy of giving him a carefree childhood. Instead, he was like the Cookie Monster gobbling up all the indulgences and demanding more. Not surprisingly, he came to see this treatment as a lifestyle rather than the gift it was intended to be.

The truth is, kids aren’t always thankful just because we require them to say “thank you.” As a very coddled only child, I, too, was clueless about the effort that went into taking care of me. It was not until I had my first child that my eyes were opened and my gratitude began to flow. How sad that my mom had to wait thirty years to be thanked for her sacrifice!

But there are ways we can help our kids avoid falling in that trap of entitlement. We decided to institute three requirements to plant the seeds of gratitude instead.

Requirement #1: Chores are shared by everyone in the family
When it comes to chores, some parents believe “kids should be kids,” while others fear making their children feel like “servants.” Let’s reframe how we see chores. Giving your children the opportunity to be responsible gives them a feeling of worth and pride for a job well done. They begin to see that they add value to the family beyond being little and cute.
3 siblings making a chore list on a small whiteboard
Chores are an important way to teach your future adults how to take care of themselves and to live in community with others. Kids should see and hear how all members of the family have important jobs to do to help with the smooth operation of the house.

Let me be clear, a chore is something children do for the family, not simply picking up after themselves. If children make a mess or have messy rooms, that mess is a consequence of their choices which must be addressed. A chore, on the other hand, is a contribution to the general upkeep of the household.

When you divide and conquer the household chores, children see the effort required to run a family and know they are sharing that burden with others. This is the fertile soil gratitude germinates in.

In my experience, letting children pick their chores is an easier way to get cooperation. One trick that works for me is to host a “chore draft.” The chores for the day/week are written down and you go around a circle with each member of the family choosing one chore off the list until all the jobs are handed out. I take it a step further and assign the “first round draft pick” to the family member who worked the hardest from the day/week before.

Requirement #2: Spending money comes out of their allowance
To develop a heart of gratitude in your children, consider giving them an allowance. When your children understand the value of a gift given, they will appreciate the sacrifice the giver makes.

Allowances need to include guidelines. We had two:

  1. The money is to be used to buy their wants (candy, toys, games, etc).
  2. They must be able to account for how they have spent the money.

You may want to keep it simple like we did, or add a few as your children get older. For example, you may want to require them to buy birthday gifts for friends when invited to a party.

This practice of giving an allowance with guidelines has many welcome side effects including gratitude.

If your children do not know the value of money—through experience and not just lectures or board games—they cannot possibly be grateful for the effort it takes to purchase gifts. Seeing firsthand how fast money goes and how long it takes to save more will help your children be grateful when they receive a gift.

I feel very strongly that both chores, as I have described above, and allowance should not be linked. Because we are raising adults, it is important that we do not send the wrong message about compensation for household work. There are many reasons for this, but perhaps the biggest is that you don’t want a labor strike from children who decide they don’t need the money!

A word of caution: this only works if you do not supplement your children with money if they run out!

“The truth is, kids aren’t always thankful just because we require them to say ‘thank you.’”
Requirement #3: Work
What better teacher for “adulting” than a job? Having a schedule, working with others, balancing work and life—these are all areas where your teens will be stretched. But perhaps more importantly comes understanding and appreciation. When your teens work, they will be able to understand how much effort goes into earning a dollar. This understanding leads to a natural appreciation for the sacrifice made to provide the gift as well as an appreciation of things that were purchased using the dollars earned.

For You
One common thread runs through each of these three requirements: responsibility.

Letting your children take responsibility for their own lives is our calling as parents in raising adults. The transition of responsibility will naturally get them ready for the real world, but more importantly, it produces gratitude during those moments when others give to them. Fair warning, though: Don’t expect signs of gratitude overnight. Stay obedient to the path and trust the results will come.

To help you remember the path to gratitude, I have a Gratitude in Three Steps chart you can use as a visual reminder of the elements that will counteract our entitlement culture.

Read More on Gratitude
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I am passionate about giving parents the tools they need to prepare their teens for financial independence. I firmly believe that in order to prepare teens for the road ahead they must be given the opportunity to practice making good (and not so good) choices using real dollars before they get out into the world and have real regrets. While homeschooling my two children, I was inspired to write an interactive personal finance curriculum that opens students’ eyes to the high costs of being an adult. Come see.
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harla McKinley graduated from the University of Texas with a degree in Finance. She went on to become a Certified Public Accountant with over 25 years working in both the corporate and private sectors.

While homeschooling her two children, Charla was inspired to write an interactive personal finance curriculum that opens the student’s eyes to the high costs of being an adult. After retiring from homeschooling, Charla continues to write and teach using her Beyond Personal Finance curriculum.

Charla’s passion is teaching teens that their choices matter. She is a firm believer that in order to prepare teens for the road ahead they must be given the opportunity to practice making good (and not so good) choices using real dollars before they get out into the world and have real regrets.