The Language of Money

Parents reading a book with their daughterAs we continue our conversation with Human Sciences Family Finance Specialist Mary Weinand, she reminds us how important financial literacy is and even recommends a few children’s books.

I believe financial literacy is like any other language and like any other language we need to hear it often to understand it. Young children learn best by observing and mimicking adults. Our children may not understand the concept of credit, money, or savings but they are very good observers and they learn from us. This process is called financial socialization and research by the Consumer Financial Protection Bureau indicates that children form personal financial habits as early as preschool and these attitudes often carry into adulthood.

So how can we help our children learn appropriate financial behaviors?

Young children may not know anything about banks, credit cards, or money. But, they are very good observers. They have constant exposure to their parents and a desire to mimic their behavior, or the behaviors of the community around them. Research by the Consumer Financial Protection Bureau and others indicate that the personal traits, habits, and behaviors that lead to financial well-being in adulthood start to form as early as preschool.

Children as young as three begin to demonstrate self-regulations, persistence, and focus. They can use these qualities when using and managing limited resources like time, money, treats, or belongings. They have begun to develop basic values and attitudes around saving, consuming and early numeracy skills.

Parents are often the biggest and most positive influence of the financial socialization of their children. They can help their children by providing opportunities to learn and interact with money. Children learn important money lessons simply by watching parents earn, spend, save, share and borrow. Have children create shopping lists and help them to comparison shop and select grocery items. Include children in family financial decisions, planning, and saving for goals such as vacation and college education. And, model positive financial behaviors during everyday routines, such as comparing prices and products, and sticking to a shopping list. You don’t have to have a lot of money, in fact children often learn best when choices are limited and they can observe the difference between needs and wants.

Another method to introduce children to the topic of money is through books. It is often easier to be more objective when talking about book characters and their money decisions. After families talk about what the characters could do, adopting some of the same financial concepts into their own lives is easier too.

And, parents do not need to be money experts. Many of the building blocks for good financial decision making—like patience, planning, and problem-solving—do not require a lot of financial know-how. Some good book choices are; The Berenstain Bears’ Trouble With Money, (Stan & Jan Berenstain), or A Bargain for Frances, (Russell Hoban). These books help express important financial topics such as problem solving, savings, earnings, and self-control.  A great resource for families and libraries is the Money as You Grow Book Club guide which provides several family activities and more reading suggestions.

To learn more about family finance information, contact any ISU Extension and Outreach county office to be connected with a human sciences specialist in family finance.

Barb Dunn Swanson

Barb Dunn Swanson

With two earned degrees from Iowa State University, Barb is a Human Sciences Specialist utilizing her experience working alongside communities to develop strong youth and families! With humor and compassion, she enjoys teaching, listening and learning to learn!

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Keep it Fiscally Healthy this Holiday Season

 Guest blogger Mary Weinand, Human Sciences Specialist, shares some important helpful ideas for fiscal health this holiday season.

parent and daughter putting coins into piggy bank

Each year at Holiday season we are flooded with articles and advice on how to “stay healthy” with all the choices we have and the opportunities to overindulge. Well, the advice we hear to maintain our physical health is useful for our fiscal health as well. This is a great time of year to take the opportunity to share healthy financial choices with our children.

Provide Healthy Choices

Discuss things your child enjoys that are free, such as playing with a friend or going to the library. Teachers report year after year that it is not the toys their students remember but the time they spend with their families. The card games and puzzles, the snowball fights and family meals are important healthy financial choices. A good book on this topic is, “Alexander who used to be Rich Last Sunday” by Judith Viorst. You can talk to your child about all the ways Alexander used his money and more importantly …was he happy with his choices.

Portion control

Many health advisors remind us to manage our portions to minimize over indulgence. This Holiday season take the opportunity to think about ways we can talk to our children about spending plans. How much money do they have and how do they plan to spend it when buying gifts for the family. Remind your children about added expenses like taxes and work with them to think about ways to stretch their dollars. Show them how to comparison shop and emphasize the gift of time. Promising to rake leaves and shovel driveways would be greatly appreciated by many family members. A good book to read together is, “Sheep in a Shop”  by Nancy Shaw. Ask your child if it was hard for the sheep to decide and how did the sheep solve the problem of not enough money?

Set Realistic Goals

When setting health goals we want the goal to be realistic and manageable and the same applies to finances. Young children may be confused about delayed gratification and buying gifts for others. It can be difficult for children to give a gift they may want themselves. Talk to your child about things that take time, plant some seeds in a cup or in a garden, and wait for them to grow. Together, take care of the seeds to help them grow. Or, sit down as a family and create a “family fun” list for winter, spring, summer, and fall. Write down all the activities that your family likes to do together. Some activities are free, like going for a walk or playing a game, and some activities cost money. A fun book to read together about realistic goals is, “Curious George  Saves His Pennies”  by Margaret and H.A. Rey

For more ideas or book suggestions about money, refer to the “Money as You Grow Bookshelf” by the Consumer Financial Protection Bureau. Additional family finance resources available here.

Barb Dunn Swanson

Barb Dunn Swanson

With two earned degrees from Iowa State University, Barb is a Human Sciences Specialist utilizing her experience working alongside communities to develop strong youth and families! With humor and compassion, she enjoys teaching, listening and learning to learn!

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Family Finances in the New Year

As the New Year approaches, are you writing down some goals or resolutions? Each year, I try to identify one or two new things I want to try, or do differently. I often use the beginning of the New Year to adjust my savings strategy so that I can also meet my goal of having some funds to be able to travel and visit my family when summer rolls around.

This is also the time of year that I have to pay the bills for the gifts that I purchased during the holiday season. Having a spending and savings plan is important.  Children learn so much from watching how other family members and friends use money. As adults we can model good spending habits, and educate our own children so that they will develop good consumer management skills. You may be curious about what resources are available to help you teach your child about how money works or how to be a good money manager as an adult. I would like to suggest you explore the following links:

Wishing you and your family a great and prosperous New Year!

Barb Dunn Swanson

Barb Dunn Swanson

With two earned degrees from Iowa State University, Barb is a Human Sciences Specialist utilizing her experience working alongside communities to develop strong youth and families! With humor and compassion, she enjoys teaching, listening and learning to learn!

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Follow Me:
Twitter

Children and Financial Literacy

As we continue to share about children and money, we would like to highlight this blog from fellow Human Sciences teammates in the Family Finance arena.

Maybe After A Million Words

Lori Hayungs, M.S.

Lori Hayungs, M.S.

Mother of three. Lover of all things child development related. Fascinated by temperament and brain development. Professional background with families, child care providers, teachers and community service entities.

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Financial Lessons for Kids

Science of Parenting live interview with Quad Cities television station.  Click here

 

 

 

Janet Smith

Janet Smith

Janet Smith is a Human Science Specialist-Family LIfe with Iowa State University Extension and Outreach. She currently provides family life programming in eight counties in southeast Iowa. Janet is a "parenting survivor". She is the mother of Jared-21, Hannah-20, and Cole-15. She and her husband, David have faced many challenges together, including their son Jared's Duchenne Muscular Dystrophy diagnosis.

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The Tall Tale of a Bank Robbery…

Guest blogger, Carol Ehlers shares insight with us on talking about money with children.

There we were at the bank, my 5 year old daughter and I, on a Saturday morning watching 40 pounds of coins be counted.  It was our daughter’s Christmas gift from grandparents’ year-long effort of saving coins.  I thought what a great teaching opportunity and ‘money adventure.’

When the bank clerk handed her the light-weight small bank envelope containing cash the emotion on her face showed deep concern.  By the time we got to the car there were tears and a demand that her money be returned. She was convinced that what was in the envelope did not equal her bucket of money and she had been robbed. That was over 10 years ago and the memory as well as this family ‘money story’ lives on.

Children get their first lesson on money management from the adults around them. By the age of three, children already have a good idea about how you feel about money. How you talk about it and handle it tells them a lot about how to approach money.

Children and Money

Children are not born with “money sense.” They learn about money by what they see, hear and experience. As they grow, children constantly are watching, listening and learning about money. How much does ice cream cost? Can I buy a new book or toy with my money?

As a parent, relative or other adult important in the life of a child, you are teaching the children you come into contact with about money. What would you really like them to be learning?

A great resource the Consumer Financial Protection Bureau’s Money As You Grow provides age-based activities and conversation starters to help your children develop money skills, habits, and attitudes that can serve them well as parents.

Remember:

  • You cannot not teach your children. They are learning from you whether you actively attempt to teach them or not.
  • One of the most important lessons you can teach children is positive money management.

Whether we as parents and caregivers realize it or not, children’s attitudes and values regarding money are influenced by how the adults in their world spend, borrow, save, share, invest and protect themselves with money.

Source: Talking to Children about Money

Carol Ehlers is an ISU Human Science Extension and Outreach Family Finance specialist working to empower consumers to take control over their economic lives. 

Lori Hayungs, M.S.

Lori Hayungs, M.S.

Mother of three. Lover of all things child development related. Fascinated by temperament and brain development. Professional background with families, child care providers, teachers and community service entities.

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Talk to Kids About Money

Happy boy with raised arms

Many parents think they can hide financial stress from their children, but the kids always know – and they’re worried, too. Talking together openly about family finances is a better way to lower everyone’s stress level and also teach kids about money.

 

Listen in while we start the conversation on children and money.

may podcast script

 

 

 

Lori Hayungs, M.S.

Lori Hayungs, M.S.

Mother of three. Lover of all things child development related. Fascinated by temperament and brain development. Professional background with families, child care providers, teachers and community service entities.

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Autonomy vs Diminished Skills

This week we welcome a guest post from our ISU Extension and Outreach Human Sciences Family Finance partners. If you have additional thoughts or questions we welcome the conversation.

Most days Dad cannot add or subtract or figure out if he has enough money in his pocket to pay for something. I try hard to never say, “NO”, because that leads to reasoning with Dad, and there just is no such thing as a logical discussions when Alzheimer’s is involved. My goal is to make Dad FEEL good. So, Dad now carries a wallet with $30 to $50 in it most days. With the exception of a walk down town to have coffee with the neighbor (who is also in his 80’s and lives with his daughter), dad goes nowhere without me. So, why does Dad need that much money in his wallet? Because, that is what he has ALWAYS carried in his wallet. It is NORMAL for him. It makes him FEEL good. More than once he has lost his wallet and I have always found it…in a pair of pants in the laundry basket or in a drawer in his room. I have no concern that he will REALLY lose it because he never goes anywhere without me. Dad’s wants are few and inexpensive. Having $30 – $50 in his pocket means he never has to figure out if he has enough to pay for something. If I know he wants something that will cost more than he has in his wallet, we swing by the bank and pick up some extra cash so he can manage the transaction without my help.

As Dad’s disease progresses, he gets younger in his mind and in his behaviors. While picking up stuff for our vacation, Dad began grabbing snack items for our trip. He grabbed an armload and ran to the check out to quickly pay for them. Why the hurry? Why not continue shopping with me and we all check out at the same time? As a kid, that behavior would have made Dad ask ME if my money was burning a hole in my pocket. It occurred to me that, HE wanted to pay for these things to share with everyone on the trip. Had he waited and checked out with me, I may have insisted on paying for it all together.  He wanted the joy of being the provider. So, in the future when we shop, I will send him to pick out the fruit and let him pay for it while I take care of the rest of the purchases.

My financial goal with Dad is to keep him safe, secure and happy. I don’t always get it right the first time (At first I didn’t let him carry cash for fear he would lose it), and we all paid the price. The good news is, he has no short term memory so he doesn’t remember my unsuccessful attempt at making him happy. Alzheimer’s always lets me have more than one try at getting it right.  ~Brenda Schmitt

Lori Hayungs, M.S.

Lori Hayungs, M.S.

Mother of three. Lover of all things child development related. Fascinated by temperament and brain development. Professional background with families, child care providers, teachers and community service entities.

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