Studies indicate that early overindulgence is creating unrealistic expectations among today’s teens, and it may lead to a lifelong habit of overspending. Researchers at the University of Michigan’s Institute for Social Research blame parents who overspend on their children. Few parents deny the accusation. What can parents do?
Teach the value of delayed gratification. In a compelling study about the power of delayed gratification, psychologist Walter Mischel discovered that, when given a choice between an immediate reward and a better one a little later, children who could wait grew to be adults who were more confident, effective, assertive, and dependable. They also were better able to delay gratification in pursuit of their goals than the adults who could not resist the temptation of the immediate reward when they were children.
Teach through daily experiences. The Bible encourages teaching God’s Word to children when you sit at home and when you walk along the road, when you lie down and when you get up (Deuteronomy 6:7). We should take the same approach in teaching them about money. Weekly shopping trips offer opportunities to teach children about everything from budgeting to making tradeoffs. Involve them in the process, helping them distinguish between needs and wants. Teach them to establish a budget—and stick to it.
Make it real. Surprisingly, less than one third of children get an allowance. Children need hands-on experience; let them manage real money of their own.
Be the marketing gatekeeper. In her book Born to Buy, Boston University professor Juliet Schor wrote that marketers have been successful at influencing children largely because parents are granting them direct access, with TVs and computers common place in children’s rooms. According to a Kaiser Family Foundation report, twenty six percent of two- to four-year-olds and thirty-nine percent of five- to seven-year olds have TVs in their bedrooms. Both groups watch nearly two hours per day. Consider removing TVs and computers from children’s rooms.
Be involved. Successful families, according to Schor, are thoughtful and consistent in their rules and choices. They spend a lot of time with their children and offer alternatives to the materialistic activities suggested by corporate America. They proactively teach children how to handle money and how to distinguish between needs and wants. They provide allowances, but they require that a portion of the money be allocated to savings and charity.
Of course, Schor says parents need to walk the talk. Not surprisingly, highly materialistic kids are more likely to have highly materialistic parents. Preaching lessons on restraint is unlikely to connect if the parents’ closets are stuffed with the latest fashions and a typical family outing involves a trip to the mall.
