Parenting and Prevention

Teaching our Children Financial Responsibility

By: Elizabeth Sierra

Children often think parents should provide them with everything they want.  The truth is, we should provide them with what they need. It is our responsibility

as parents to teach our children how to manage money and the differences between wants and needs.  It is very important for us to provide a safe, nurturing home with food, clothing, and the things they need to succeed.  It does not mean we need to provide the laundry list of things they want, that perhaps a friend has, or they have seen on social media. Below are some helpful tips to teach children the value of a dollar.

  • Have your child make a list of what they want, in order of desire, with the price of the item. Have them update it often. It is very common for the list to change. Ask them to contribute to the purchase. It forces them to make decisions about if it is a want or need.
  • One way to encourage children to save money is by giving them a place to save. For younger children, that may mean buying them a piggy bank or makinga piggy bank together from an empty container; Older children can open a bank account.
  • Lead by example. Avoid impulsive purchases. This is the same skill required to resist any temptation. Children see us order things on our phones and it arrives at the door. They don’t see the transactional part of buying it.
  • Let them see you use cash. Children don’t understand the concept of a credit card.
  • If your child receives $20 for a birthday gift, suggest they put half to save and half to spend.
  • Give them an opportunity to earn money and manage it. If they are old enough to get a job, great. What they learn while employed is beyond the value of earning. If they are young, maybe pay them for particular tasks/duties.
  • Talk about money. Teach children that the time to save is before spending, not after.

We aren’t suggesting parents refuse to buy things their children want.  We are suggesting asking your child to prioritize what they want and ask them to contribute, while also saving for their future. Not giving children everything they ask for is a good lesson in decision-making.

Elizabeth “Lizzie” Sierra is a passionate and dedicated Parent Educator with over 15 years of experience working with Parenting Matters in Florida. Originally from Puerto Rico, Lizzie holds a Bachelor’s degree in Psychology and was licensed as a drug and alcohol addiction counselor in Puerto Rico, where she spent seven years working in various rehabilitation programs for both women and men. She also served as a trainer for the Transtheoretical Model workshop with the Certification Board for Professionals in Addiction and Alcoholism of Puerto Rico.

Upon moving to Florida, Lizzie initially felt overwhelmed, but her connection with Parenting Matters not only helped her adjust to her new life but also sparked a new career path. Embracing the challenge to teach parenting classes in both Spanish and English, Lizzie sought support from Manatee Literacy to improve her English language skills, which she now uses to empower local families. In 2016, Lizzie earned certification to facilitate the “Mind in the Making – Seven Essential Life Skills” modules, further enhancing her ability to support parents. Her work focuses on coaching parents in effective parenting techniques, providing support, and helping them access essential resources to create safe and healthy homes. Lizzie’s commitment to parent education stems from her belief in its crucial role in shaping strong families and communities.