Thoughts on Grandparenting

As a University of Florida IFAS Extension Agent in Leon County, I teach Basic Money Management classes in the community.  In these classes, we explore the money messages from childhood that we carry with us.  As adults, these messages are like a tape recording that is played over and over in our heads as we make money management decisions. 

When asked, "Who taught you about saving money?" the most frequent response names a grandparent.  The importance of "putting money away for a rainy day" is a significant message to imprint on the minds of our grandchildren. 

Children develop their attitudes and values concerning money by watching and listening to the adults who are close to them.  Parents and grandparents are always teaching by example; make sure it is positive.  It=s good for children to have experience using money.  Help your grandchildren learn to manage money wisely.

Preschoolers can learn about money by counting and sorting coins.  They may view all money as having the same value.  Start by teaching your grandchildren what the various pieces of money are called.  Show them how money works when you are shopping.  Allow your grandchildren to choose and pay for a small item at the store.    Let them keep a separate coin purse for their money.

Understanding the difference between needs and wants is an important lesson that will help your grandchildren begin to develop good money management skills.  Appreciating the difference between a luxury and a necessity helps both children and adults control spending.  You could take your grandchildren on a scavenger hunt at your house or theirs looking for examples of wants and needs.  You could develop a "Need It - Want It" list with your grandchildren that shows the difference between a necessity and a luxury.  The list can help children understand the difference between wanting video games and candy bars and needing clothes and food.  You can make this into a game by having your grandchildren list several things they own and decide which of them are necessities.  They can also do this with things they would like to own. 

By helping your grandchildren make a collage of needs using pictures they cut from old magazines and catalogues, you could turn this money management lesson into an art project.   Write "NEEDS"  in the center of a piece of paper and then paste the pictures around the word.  When it is time to do the "WANTS" collage you may need to start with a larger piece of paper.

Continually teach children the difference between needs and wants demonstrating that we often have to wait or save to buy what we want. This would be a good time to include a discussion about saving for something that they would like to have.  Instead of a "piggy bank" consider using a clear container with a lid so your grandchildren can see what they save.  Have fun decorating it together.

School-age children enjoy playing store or having a lemonade stand.  I have many fond memories of playing store at Grandma=s house.  The lemonade stand didn=t work very well because she lived on a country road but she always seemed to know just when a crew of hay haulers would be coming by.   

If you take your grandchildren to the supermarket, have them help make your grocery list and cut out the coupons you will use.  This involves children in decision-making, demonstrates the importance of planning your spending, and shows them how to get good value for your money -- the basis of sound financial management.  Remember there are opportunities to teach children about money and values every day. 

Allow your grandchildren to earn some money by doing some extra jobs around the house or yard.  Encourage your grandchildren to share with others by donating to a charity or church.   Avoid using money for rewards or punishment.

If your grandchildren are teenagers, you may need to become a little more high tech to spark their interest.  Perhaps each of you can sign up for one of the free stock market games that can be found on the web.  One site that I know is http://fantasystockmarket.com.  If you do not have a computer, now is a good time to check out the computer classes available at the public library, senior center, or local community college.  This would be a great opportunity to have fun with your grandteens.  You would learn about investing and the benefits and risks associated with it, but without risking any real money.

There are a variety of things we will leave to our children and grandchildren when we are gone.  Even more important than the material things we have to pass on, may be a set of worthwhile values and skills.  Learning to manage and use money wisely may be among the greatest gifts you can bestow.