How Do I Teach My Children Financial Responsibility Lesson

Lesson8.How Do I Teach My Children Financial Responsibility?

Overall Objective: At the conclusion of this lesson, students will:

Realize the importance of first individually learning and then teaching others
Gain a knowledge of best practices in helping others to learn
Understand suggested methods for teaching children at different stages of life

Preparation

Review Reading 8 “Delegating Work and Responsibility to Children,” Ensign, Jan. 1986, p. 66.
Print out Lesson 8L: How Do I Teach My Children Financial ResponsibilitySupport Material if desired

Materials Needed:

Copies of the scriptures

Note: There is purposely more material in this lesson than you can teach in the forty minutes of class. Please prepare well and listen to the Spirit as it helps you to know what the members of your class need the most. Remember that the true test of teaching is not the quality or polish of the lesson, but whether what we teach helps people to live the gospel better and to apply things learned in their lives.

Suggested Lesson Development

Counsel from our Leaders on Teaching our Children

Teaching children financial responsibility is the responsibility of parents. Elder Joseph B. Wirthlin commented:

Too many of our youth get into financial difficulty because they never learned proper principles of financial common sense at home. Teach your children while they are young. Teach them that they cannot have something merely because they want it. Teach them the principles of hard work, frugality, and saving (Joseph B. Wirthlin, “Earthly Debts, Heavenly Debts,” Ensign, May 2004, 40).

President N. Eldon Tanner shared a verse which he learned many years ago as a child.

I am the child.
You hold in your hand my destiny.
You determine, largely, whether I shall succeed or fail.
Teach me, I pray, those things that make for happiness.
Train me, I beg, that I may be a blessing to the world.

(N. Eldon Tanner, “Teaching Children of God,” Ensign, Oct. 1980, 2).

To a large degree, parents hold in their hands the destiny of their children. The lessons they teach both by precept and example may have eternal consequences for their children.

This verse discusses two important questions. First, what are those things that will make for happiness? And second, how do we train our children so they become a blessing to the world?

Quotation:

Regarding the first question, President Gordon B. Hinckley commented:

“Happiness in family life is most likely to be achieved when founded upon the teachings of the Lord Jesus Christ” (“The Family: a Proclamation to the World,”Ensign, Nov. 1995, 102).

That is the first and most critical thing we should teach--the teachings of our Savior Jesus Christ.

Regarding the second question, Bishop John H. Vandenberg said about training our children:

You’ve heard that statement that each of us is either a part of the problem or a part of the answer, with the understanding that this world is beset with problems. If you are a part of the answer, then you are a blessing to the world and can train your children to follow in your footsteps.

Those who are a blessing to the world will try to do these things: (1) lend a helping hand, (2) refrain from infringing upon the rights of others, (3) obey God’s laws and the laws of the land, (4) stand up for the right and fight against evil, and (5) share the truth with others, remembering, and remembering well, that the greatest gift of God is his plan of salvation (John H. Vandenberg, “Turn Heavenward Our Eyes,” Ensign, Dec. 1971, 114).

Clearly both the teaching and training are important parts of the teaching process. And we must begin when our children are small. For ease of teaching, I have divided these two areas into the spiritual and temporal: spiritual for things we should teach our children, and the temporal, for things we should train our children.

Principles of Teaching Financial Responsibility

Much has been written and said about the best ways to teach children about financial responsibility. What are some of the principles that may be helpful? (Write them on the board.)

Please note that these are only a few ideas. Write the answers on the board as the students share their ideas. If necessary, include a few of the eight principles below:

1. Teach by example individually

President N. Eldon Tanner commented:

“It is most important, therefore, that we are always on the alert, remembering that one teaches more effectively by example than by precept. Let us never forget the old axiom: “Your actions speak so loudly that I cannot hear what you say.” (“Teaching Children of God,” Ensign, Oct. 1980, 2.)

“Teach by example individually” should always be our starting point as we seek to teach others, and especially as we seek to teach our own children. We cannot teach what we are not doing.

2. Teach by example as a couple

Elder Marvin J. Ashton commented:

In the home, money management between husband and wife should be on a partnership basis, with both parties having a voice in decision- and policy-making. When children come along and reach the age of accountability, they too should be involved in money concerns on a limited partnership basis. (Marvin J. Ashton, “Guide to Family Finance,” Liahona, Apr. 2000, 42.)

How do you help involve children in money matters on a “limited partnership basis?”

Elder Ashton recommends five key points in his article “One for the Money: Guide to Family Finance”:

Pay an honest tithe.
Teach family members early the importance of working and earning.
Teach children to make money decisions in keeping with their capacities to understand.
Teach family members to contribute to the total family welfare.
Teach family members that paying financial obligations is part of integrity and honesty development.(Marvin J. Ashton, “Guide to Family Finance,” Liahona, Apr. 2000, 42.)

These are our next five recommendations.

3. Pay an honest tithe and generous offerings

As a wise steward, it is important that you pay the Lord first in all you do. Elder Ashton wrote:

“If our tithing and fast offerings are the first obligations met following the receipt of each paycheck, our commitment to this important gospel principle will be strengthened and the likelihood of financial mismanagement will be reduced. (“Guide to Family Finance,” Liahona, Apr. 2000, 42.)

While tithing and fast offering are not the only steps to financial management, it is an important first step.

4. Teach family members early the importance of working and earning.

Working and earning are critical skills for our children. Elder Marvin J. Ashton commented:

““In the sweat of thy face shalt thou eat bread” (Gen. 3:19) is not outdated counsel. It is basic to personal welfare. One of the greatest favors parents can do for their children is to teach them to work.” (Marvin J. Ashton, “Guide to Family Finance,” Liahona, Apr. 2000, 42.)

5. Teach children to make money decisions in keeping with their capacities to understand.

Help your children become wise financial stewards. Elder Ashton counseled:

Based upon appropriate teaching and individual experience, children should be responsible for the financial decisions affecting their own money and suffer the consequences of unwise spending. “Save your money” is a hollow pronouncement from a parent to a child. “Save your money for a mission, bicycle, doll house, trousseau, or car” makes understandable sense. (“Guide to Family Finance,” Liahona, Apr. 2000, 42.)

6. Teach family members to contribute to the total family welfare.

From the article “Guide to Family Finance” it states:

Help family members understand the family financial situation. As children mature, they should understand the family financial position, budget, and investment goals and their individual responsibility within the family. Encourage inexpensive, fun projects, understandable to the children, that contribute to a family goal or joy. (“Guide to Family Finance,” Liahona, Apr. 2000, 42.)

7. Teach family members that paying financial obligations is part of integrity and honesty development

Elder Marvin J. Ashton stated:

“Latter-day Saints who ignore or avoid their creditors are entitled to feel the inner frustrations that such conduct merits, and they are not living as Latter-day Saints should! (Marvin J. Ashton, “One for the Money,” Ensign, July 1975, 72.)

We must be honest in all our dealings.

8. Remember the Law of the Harvest

The law of the harvest states that what we sow, we reap. If we sow wheat, we will not get corn. If we sow good examples of budgeting and financial management, we will likely reap similar characteristics with our children and grandchildren.

One of the hardest things for parents is that we try to “rescue” our children from their poor financial choices. While this may make us feel good, natural consequences are an important teaching tool in helping us return to our Father in Heaven. Realize that we cannot sow reckless spending and expect to achieve our goals. We cannot continue to rescue our children from their financial problems and expect them to be wise financial stewards. We reap what we sow.

When and What to Teach Children

There are many important things that we must teach and train our children. Due to the different needs of those taking this class, you might want to pick one age group and discuss the spiritual things you should be teaching them and the temporal things as well. Realize that you have insufficient time to address each of the groups discussed, but a simple discussion of a single group might be helpful.

Teaching Young Children

From a gospel perspective, we should teach young children:

To know who they are,
That they are children of God,
To pray,
To love their family and friends,
To share with and have compassion for others, and
To be thankful for their blessings.

At the same time, from a temporal framework we should train them:

To learn to save for things they want, and
To set and achieve goals.

Teaching Pre-teenagers

From a gospel perspective, we should teach pre-teens:

That all things come from God and that everything is the Lord’s,
That they are stewards over everything they have, and
To always pay the Lord first.

At the same time, you should train them:

To save, to pay themselves second,
To learn discipline and frugality, and
That there are a lot of things more important than money.

Teaching Teenagers

From a gospel perspective, I encourage you to teach teenagers:

That they are accountable for their actions
To learn to serve and to give
Not to covet, and
To recognize the Lord’s hand in their lives.

At the same time, you should also teach them:

The difference between income and wealth,
About good assets and good liabilities, and bad assets and bad liabilities,
To spend less than they earn, and
To develop and live on a budget.

Teaching college students and older children

From a gospel perspective, teach them:

To counsel with the Lord in all they do,

To be thankful for their blessings,
To continue to learn to serve and give, and
To expect financial setbacks and challenges, but to know that setbacks and challenges produce growth of character and testimony.

Other truths include teaching:

To encourage the development of habits of frugality and discipline,
How to save and invest wisely, and
To maintain the habits of goals, budgeting, and earning as much as they can.

Teaching Married Children

From a gospel perspective, teach:

By personal example, and
That a wise financial steward that has his/her priorities in order.

Teachthis age group:

That retirement planning comes first: helping children with money problems comes second,
That discussions of what children and grandchildren will inherit or receive as gifts are inappropriate,
That gifts of cash to adult children as part of a negotiation strategy are not acceptable,
That when adult children need financial help to accept it graciously and pay it back promptly, and
To generally try to stay out of adult children’s family matters.

Summary

To a large degree, parents hold in their hands the destiny of their children. The lessons they teach both by precept and example may have eternal consequences for their children. This section addressed two important questions: “What are those things that will make for happiness?” and “What must we train our children to become a blessing to the world?”

It is critically important to teach children financial responsibility. If you do not teach your children, who will?

There are eight principles of financial responsibility that we discussed. While these are not the only principles, they are important ones. They include:

Teach by example individually,
Teach by example as a couple,
Pay an honest tithe and generous offerings,
Teach family members early the importance of working and earning,
Teach children to make money decisions in keeping with their capacities to understand,
Teach family members to contribute to the total family welfare,
Teach family members that paying financial obligations is part of integrity and honesty development, and
Remember the Law of the Harvest.

The First Presidency and Quorum of the Twelve have declared:

Parents have a sacred duty to rear their children in love and righteousness, to provide for their physical and spiritual needs, to teach them to love and serve one another, to observe the commandments of God and to be law-abiding citizens wherever they live. Husbands and wives—mothers and fathers—will be held accountable before God for the discharge of these obligations (“The Family: A Proclamation to the World,” Ensign, Nov. 1995, 102).

We are stewards. We will be held accountable for all that we do and become. Let us become the wisest and best possible stewards that we can be, and let us do it with the Spirit and strength of the Lord. And not only will it make a difference in our lives, but it will make a difference in the lives of our children (and grandchildren, and great-grandchildren. . .) as well.

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