Tips to Start Your Grandkids on the Road to Becoming Money Savy

Tip #1: It Takes a VillageHillary Clinton got it right when she said, “It takes a village.”  But, you must be respectful that the real chiefs of the village are the parents.  Life will be easier if you respect that hierarchy and make sure that the parents have to set down the rules for their village. You are just there to support and respect their wishes.  Money issues have to be discussed.  I believe in teaching kids the concept that, “The only way you get money is to earn it;” therefore, I recommend that your grandchildren do chores to earn their money. I also believe that there are “Citizen-of-the-Household chores,” where kids learn to be a good citizen by pitching in and having responsibilities that do not pay a salary. Don’t forget to clear this concept with your kids before downloading Job Charts from my website and plunging into the work for pay system.Tip #2: Hold a Family MeetingThe family meeting should be a monthly gathering of all family members; you can join via Skype, Facetime, or Google Hangout, if you are not present.  These are meetings where goals and plans are made, where rules are discussed and—very important—where the value of money is used as a key tool in the teaching of family values and life skills.  You will discuss such topics as; short, medium and long term goal setting, decision making, problem solving, the allowance system, budgeting, donation to charities, gift giving and receiving, etc.  Hopefully, you have helped to set this up and that you understand your role as the Grandparent/Coach.It is important before getting into the planning for a family meeting and what it is to take a moment and reflect on what it is NOT.  It is not a legislative body.  A household is not and cannot be a democracy, though it can and should encourage participation, and respect the opinions of all members of the household.  

Ultimately, though, it is the parent or parents who make the decisions.I know how tempting it is to shower your grand-kids with toys and stuff.  I’m a grandparent; I get it.  But, we are also the first to complain about the little ones running to the door and greeting us with, “What did you bring me?” before the real words of, “Grandma and Grandpa, it’s so great to see you,” are uttered.  So, how do you cure that?  Stop it.  You have trained that behavior. Frankly, aren't we really indulging ourselves and doing a disservice to our loved ones?Give of your time, your wisdom, and your guidance to help set a secure future for your grand-kids. Gifts are fine when given appropriately.  When it is gift time, discuss it with the parents first, and never use a gift as a bribe for good behavior or to undermine or outshine.Think of special things you can do with the grand-kids that don’t involve money.  Bake cookies or teach them a special family recipe that you can make for a holiday or special occasion.  If you don’t have that, now is a good time to start your own tradition with your grand-kids.  Plan a picnic, or a local fishing or golf trip.  Plant the garden and let the kids tend to it and the culmination at harvest time is the meal or salad that will highlight their work.This is only the beginning of the lifelong learning around money.  But helping your grand-kids to navigate the road to their financial future is one of the greatest gifts you can give

Why am I talking to grandparents about the topic of money savvy kids?  Because we, as grandparents, have a special relationship with our grand-kids and we can really be a positive influence.  This is the perfect topic for you to support.  The other reality is that we may have more free time than our Millennial children, who are now raising their kids.Remember what it was like when you were starting out?  Well, the financial pressures are even greater today. In our day, it was typical for Mom to be home and for Dad to be at work.  According to the Bureau of Labor Statistics, even when there are households with children, headed by two parents, the majority of those households have both parents employed.  Also, a new phenomenon in this generation is the 35 percent of households headed by a single parent.  Extra time on their hands?  I don’t think so. You don’t want this topic to be overlooked, so pitch in and help.