Money Master Class Review - Week Eleven Summary
In her book, "Money Smart Kids," Gail Vaz-Oxlade offers a 5-point summary for giving kids allowances that goes beyond just a reward system. Here's how you can help your children learn about money management:
- Tie Allowance to Family Values: Instead of a strict payment-for-chores system, Vaz-Oxlade suggests giving an allowance that reflects the child's portion of the family's financial values and responsibilities. This helps children see money as a tool rather than just a reward.
- Set Clear Guidelines: Teach children to budget their allowance by dividing it into categories such as spending, saving, and giving. This helps them develop good financial habits early.
- Encourage Saving Goals: Help kids set specific savings goals, making the concept of saving more tangible and motivating.
- Teach Budgeting Skills: Provide simple budgeting worksheets or methods so children learn to plan their spending and savings over time.
- Discuss Wants vs. Needs: Use allowance discussions to help children distinguish between essential expenses and discretionary spending.
- Be Consistent and Patient: Regular, consistent allowance payments combined with ongoing conversations about money reinforce learning.
- Use Real-life Examples: Share family money decisions to help children understand the practical impact of budgeting and saving.
By integrating these approaches, Vaz-Oxlade emphasizes teaching kids not just to manage an allowance, but to develop lifelong financial literacy skills.
Moreover, Gail encourages everyone to sign up for RESPs (Registered Education Savings Plans) and highlights the availability of the Canada Learning Bond for lower income families. For more information, visit the provided link.
Gail also suggests cooking up meals to stock freezers for busy weeks or to stretch grocery budgets. She recommends checking out the websites Bon Appetit "97 Big-Batch Cooking Recipes" and Meal Plan Addict "10 Batch Cook and Freezer Recipes You Need" for over 100 recipes.
In March, Gail will discuss investing, moving money into HISAs (High Interest Savings Accounts). Stay tuned for more updates!
Remember, an allowance can be seen as "free money," but it is also the money kids need in order to learn how to manage it. So, be consistent in delivering and expecting from an allowance. Discipline is key to financial management.
Share this post with friends via various social media platforms to help spread the word about teaching kids financial literacy. You can find links to share on Facebook, X, Pinterest, LinkedIn, Tumblr, Reddit, WhatsApp, Email, Telegram, Threads, and Bluesky in the article.
The article also provides a recap of the Money Master Class, including a link to all Gail's tweets from the start, weekly recaps, and links to the intro and week one recap. Don't miss out on the opportunity to learn from Gail Vaz-Oxlade!
- Adopting a reusable shopping bag for food-and-drink purchases can be an effective way for children to practice their personal-finance skills, as it teaches them the importance of saving money by reducing waste and lowering expenses over time.
- After discussing the concept of budgeting with their kids, parents might consider setting aside finances for education-and-self-development, such as Registered Education Savings Plans (RESPs), as suggested by Gail Vaz-Oxlade.
- To complement the financial allowance and responsibility training for children, encouraging lifestyles that focus on saving money, like meal-prepping using recipes found on websites like Bon Appetit and Meal Plan Addict, can be an effective strategy for instilling good personal-finance habits.
