What is the most important thing I can teach my children about money?

Hello, my name is Ron Blue, and a question that I get frequently is, "What is the most important thing that I can teach my children about money?" And, I believe that the most important thing that you can teach your children about money is, first of all, the Source of it. In other words, God is my Provider, so I need to look at the money that I receive, that I have the responsibility and the privilege of managing - all of it comes from God.

I think there's a second thing that I would NEED to teach my children also, and that is that there's not an unlimited supply of money. How do you teach your children that there are limits? In our family, we used an envelope system. When you put money into an envelope and the child had it and could spend it for clothes or for gifts or whatever it may be, when the envelope was empty, there was no more spending.

That is probably the most practical and most important practical thing that you can teach your children. First, God owns it all and He's the Provider, but secondly there is a limited amount of money. No matter how much money you have, there is a limit to what you can do with it.

And, somehow we need to teach our children that you can spend it any way that you want but you can only spend it once. And we taught that through the envelope system. When the envelope was empty, they were done spending. Finally, there is no such thing as a credit card to fund my children's desires or needs.

When the envelope's empty, I'm done spending.

Click here for the April 30, 2009 Blog Entry