I've been thinking a lot about how to help our children prepare for adulthood. We teach them to work hard, find a good job, and make money, but how often do we actually sit down with them and teach them how to manage the money they earn?
I'm starting to realize that simply telling our children to save money or become responsible isn't enough. Sometimes they understand what we're saying, but they don't know where to start. And maybe that's where we, as parents, need to help them take the first step.
I want to start by teaching my son how to build a healthy relationship with the money he earns. Not just how to make money, but how to manage it, save it, grow it, and use it responsibly.
We can start with something simple: sitting down together to review his bank statements, understanding how much he earns, how much he spends, and where his money goes each month.
One method I want to introduce to him is the 80/10/10 method. Using 80% for living expenses, including his contribution to the household, bills, personal spending, and charity; 10% for investing; and 10% for an emergency fund.
The percentages can always be adjusted to his financial situation, but what I really want him to understand is the purpose behind each one.
I also want him to learn that an emergency fund is not money to use whenever he wants to buy something. If he wants something bigger than his budget, he can learn to save for it, adjust his spending, or find ways to earn extra money without taking away from the money he has already set aside for his future.
And why do I want to teach him about giving when he isn't making very much money yet?
Because I don't want him to grow up believing that he has to become wealthy before he can help someone else.
Giving doesn't always have to be about money or how much we give. Sometimes even a small act of kindness can make us feel that we have something valuable to offer. I want him to experience that feeling for himself and understand that generosity can become a part of his life, no matter how much money he makes.
I know these are small steps, but I believe this is where financial responsibility begins.
Our children don't have to figure out their entire future right now. They just need a place to start and an opportunity to practice what they learn.
As parents, we cannot build their entire future for them, but we can help them develop the habits and confidence to build it themselves.
It doesn't matter how much money you start with. What matters is learning how to manage it, building good habits, and staying consistent as you grow.
P.S. The reason I want to start with a money method is that it gives us a clear structure to follow and makes managing money less confusing. The goal isn't to restrict how we spend, but to build a habit of managing money with purpose. As our income, responsibilities, and goals change, we can always adjust the method to fit our lives.
Start with a simple structure. Practice it consistently. Build the habit. Adjust it as you grow.
T.L. Eggert
