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As of January, credit card spending increased to $2,563 trillion in the United States (source: CreditCards.com). This is, in part, due to the rise in unemployment. The Bureau of Labor Statistics reported the unemployment rate increased to 8.1 percent in February and Phoenix is ranked #7 compared to other large metropolitan areas.
Working moms, who already have their hands full, are feeling the pinch. Despite the rough economic outlook, there is a raw opportunity for working moms to teach their children valuable lessons about work and money.
1. Communicate candidly about work and money.
Although work is often discussed openly, money is a taboo subject in most families. Yet, according to Lisa Shevy, Senior Director, Development for Junior Achievement® of Arizona, children as young as five "will understand the concept of work and money." Dr. Taffy Wilkins Wagner, a Certified Educator in Personal Finances, agrees and adds, "usually children are used to seeing one parent, if not both parents, going to work while they attend school. So, they are aware the parent is working and getting paid."
Children should be taught how money is earned and spent, as well as the consequences of poor choices. For example, if a child complains about going to school, a comparison can be drawn between his responsibility to attend school and your responsibility to go to work. If either of you chooses to miss school or work, there will be natural consequences (i.e. missed learning and missed pay). Dr. Wagner offers another scenario, "Our twins have seen their dad work late because of equipment problems during they day...they understand completing a job correctly is its own reward."
2. Help children discern the difference between a "need" and a "want"
Shevy advises, "One of the most important things moms (and dads) can do is help their children understand the value of a dollar." She adds, "[Working moms] feel the need to buy things for their children as a decoy for the lack of time they may be able to spend with them. This does nothing but devalue money to your children." Children must learn that a need is something you have to have, or something you can’t live without (i.e. food, shelter, etc.). A want is something you would like to have, but isn’t a critical necessity (i.e. Webkinz, Wii games, etc.). Moms can model this by monitoring their own needs and wants by making conscious decisions about how money is used.
The difference between needs and wants extends to employment as well. Some working moms are in jobs that are unfulfilling and dissatisfying. For many, the job only meets a financial need. Your attitude toward work shapes your child’s perception of it. Shevy suggests helping your child outline their future by exploring areas where you child excels. She states, "As you begin to instill educational values in your children, they will learn how it equates to a certain earning capacity." As a result of this early education, your children will seek out careers based on what they want, rather than just on what they need.
3. Access resources that can help.
There are a number of local and national organizations, as well as individual professionals, who can help working mothers teach their children about work and money.
- Junior Achievement (JA) is a non-profit organization that partners with schools and educators around the world to teach children about entrepreneurship, financial literacy and work readiness. If you are interested in learning more about JA, consider attending the JA Finance Park Test Run on Wednesday, April 1, 2009 from 5:00 to 8:00 p.m. For more information contact Lisa Shevy at (480) 377-8500.
- Dr. Taffy Wilkins Wagner is a Certified Educator in Personal Finances who provides financial counseling for individuals (including children), single parents and couples. She can be reached through her Web site: www.debtatthealtar.com.
- The Children’s Financial Network is a company dedicated to worldwide financial literacy through the education of our youth and their parents about money and the values and life skills they'll need to be successful in the world. Learn more by visiting their Web site: www.childrensfinancialnetwork.com/.
- The Take Our Daughters And Sons To Work® Day program was founded to create an opportunity for girls and boys to share and communicate their expectations for the future. Employers can coordinate events nationwide on the fourth Thursday in April; this year’s program will be on April 23rd. Learn more at www.daughtersandsonstowork.org.
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