When I was a kid, my parents hid everything that was related to money. They didn’t clue us in as to how much things cost but instead would say “Do you think money grows on trees?!” or “Do you think I am made of money?”

I honestly didn’t have answers to these rhetorical questions but I did, indeed, grow up with zero concept of how to manage money. Inevitably, I was chastised by my mother about how terrible I was at managing it. <insert extreme eye roll>

Now that I have kids of my own, I definitely clue in my 10 year old about the cost of living in our house; the mortgage, the utilities, the cost of food. I don’t do this to shame him into not asking for anything but I do it to let him know that there is not an endless stream of money available. Both me and his father are self-employed and money does not arrive here consistently.

With this information, I tell him about how I have to hold back X amount of dollars until the next wave arrives or that since we are going to a family memorial soon, we have to adjust the budget, etc. etc.

At first he thought it was all some sort of punishment. I expressed that I was trying to give him an education that my parents did not give me, nor the schools. As far as I know, our school system here does not teach personal finance to teens in high school.

I showed him our mortgage statement a few months back. He gave me the Extreme Eye Roll and I just giggled. I said, “Check this out: look at how our mortgage has more in interest than principle.” I then explained what those were. He was rather shocked that I pay more for the privilege of borrowing the money than I do on the actual house right now. I explained that most mortgage companies are betting on the average homeowner to move or refinance within 7–10 years of purchase and so the way amortization is laid out, they get their money up front. “Those finks!” he exclaimed.

When we grocery shop, I ask him to compare prices and decide which is a better deal or if a sale is worth it. Since it involves math, he gets a bit twitchy, but again I explain that if he wants the most for his money, he has to be able to think critically about purchases. This keeps him from having impulses at the stores and just grabbing at something for immediate gratification. He also realizes that X product is better for everyone in the family rather than Z product that he wants.

We do splurge occasionally. Usually when we travel, we have budgeted for a good time and allow the kids some free reign. I rarely indulge his whims… Now the subject of him getting a phone has come up. Heaven help me. ;-)