How many of us think our job is to spoil our grandkids? It’s tempting, I know! We love showering them with gifts.
So, I’m sorry to burst your bubble, but I believe our “job” as grandparents is to spend quality time with them, lead by example and be their money mentor by modeling good money habits.
Now I know our kids think we mess up all the time, but they didn’t turn out so bad!
As grandparents, we know there are some things we shouldn’t let our grandkids do like:
- Never eat all the sweets they want to.
- Don’t let them get away with doing things their parents would discipline them for.
- Don’t let them stay up past their bedtime.
- Never buy clothes without prior parental approval.
- Never compare the grandkids to their parents.
- And never, ever give unsolicited parental advice to my kids about how to parent.
But, I believe we as grandparents are incredibly important in our grandchildren’s lives because we
- Give hugs.
- Listen to their stories.
- Read books, lots and lots of books.
- Play games (love Uno, Blink, Scrabble, and Chess).
- Bake and decorate cookies with them encouraging their creativity.
- Play outside with them like riding bikes and jumping on the trampoline.
- Cheer them on at soccer and baseball, and dance, and gymnastics.
- Take them hiking and camping, and fishing.
- Encourage their help with planting a garden and digging in the dirt.
These are memories our grandchildren will cherish forever because of our unconditional love. We can also give our grandkids invaluable lessons by teaching them lessons about money.
(Maybe even a few lessons we missed giving our kids.)
So how do we “money mentor” our grandkids?
Step 1: Take a look at your behavior.
Do you bring a present every time you visit your grandkids? This will encourage them to expect a gift whenever they see their grandparents. Instead of always bearing gifts, give your grandkids the gift of time.
Do an activity with them. I personally love baking and enjoy letting them cut out cookies and then decorate them. I think I’ll expand this to taking them to the grocery store to buy the ingredients, and measuring the ingredients when making the cookies.
Or maybe you’re an outside person. How about letting them help you plant your garden, and teach them about eating vegetables we grow.
These activities will be time well spent when we use them as a learning experience, too.
Step 2: Encourage your grandkids to earn their own money.
I’ll never forget saving my money when I was a kid, so I could buy a special toy or book. And I want to encourage my grandkids to do the same. So why not give them age-appropriate jobs they can do to make some money. For instance:
- Pulling weeds in the garden.
- Watering plants.
- Help cleaning out the garage.
- Sweeping the kitchen.
- Wiping or putting dishes away.
- Folding clothes and putting away.
- Babysitting.
- Mowing the lawn.
These jobs foster “work for pay” so they learn how to earn money and save for that special item they want.
And make sure you pay appropriately. I know it’s easy to remember what we got paid for similar jobs, but don’t forget about inflation! When I was babysitting (many years ago), I made $0.50/hour. Fast forward to today, and babysitters are getting $10.00/hour. So, pay the going rate, don’t “cheat” your grandkids!
I encouraged my kids to deposit their money into three accounts: current want (70%), future want (20%), charity of their choice (10%). It’s important for kids and grandkids to learn how to save for longer term wants and also give back.
Step #3: Teach your grandkids how to manage their money and invest.
Granted, this step is for older grandkids, but it’s an important lesson because so many schools do not teach financial literacy. I remember learning how to balance a checkbook in high school, but this isn’t taught any more 🙁
There are a variety of resources you can consider, but at a minimum, talk to them about:
- What a checking account is.
- How to use a debit card and deduct those purchases from the balance.
- How to use a credit card.
- The importance of a credit score.
- The cost of interest.
- The importance of saving first and then buying.
With the parents consent, also talk to the grandkids about investing, maybe even setting up an investment account for them and using birthday money to buy their first stock so they can see that dividends buy more shares. It’s fun to give the grandkids a couple options, so they pick a company they’re interested in.
Being a money mentor to your grandchildren involves teaching them a variety of aspects from budgeting to planning, earning and saving. Besides giving them an understanding of the value of a dollar, teaching your grandchildren about money helps prepare them for life in the real world. Money management is a vital life skill and it is never too early to teach your grandkids to be financially savvy.
Have fun being the grandparents to make wonderful memories with your grandkids and teach them the importance of a dollar, too!
Want to further the conversation about mentoring your grandkids to be financially savvy, join my private Facebook group, Women Talk Finances.