Sent: 04-05-2010 10:49:04
In this issue:
Return to full article list
HomeFree weekly newsletterSelf Managed Super Fund ArticlesContact usLogin
Negotiating Money Issues with Kids
Often negotiations in households end in tears or even blows because one party wins and the other loses. The key to a successful negotiation is to know your bottom line, and seek to understand the other party's wants and needs. Learn to distinguish between 'must haves' and 'like to haves'.
Knowing what is and is not negotiable improves your chances of getting what you want from a situation, whilst resolving the issue in a way that is acceptable to both parties. Negotiating with your bottom line firmly in mind saves unnecessary angst (and expenditure).
Kids are constantly negotiating with you for things they want. Use their requests to discuss needs vs wants, and to help them understand your position. It's no use fighting, so have a bottom line position in mind (eg yes they can have a Barbie/Transformer as a birthday or Christmas present, as a bonus for extra tasks, or if they buy it with their own money), and negotiate.
Help your kids to work out what they really want from the situation, and to consider what the other party (eg you) really wants. Encourage them to find a way for each party to win, and to recognise how this feels.
With older kids, peer pressure will also be more of an issue - keeping up with the latest fads at school, having a mobile phone because 'Billy has one' (and not just any old phone - a very expensive one with all the latest downloads). Again, use the requests to discuss needs vs wants, and to help them understand your position. Also to recognise that they are not what they own and can still feel good about themselves even if they don't get the item they want.
Greg Smith's books - '7 Secrets to Teach Your Kids the Value of Money', 'Money Makes the World go Around' and the Parent's Teaching Guides all address the subject of needs vs wants. Teaching Kids to Spend Smarter is also a great guide to dealing with branding, comparison shopping, and value for money issues.
For great resources to help you teach your kids about money, including the books and guides mentioned in this article, see www.qld.kidsmoney.com.au. Leanda Kayess can be contacted on email@example.com, or phone 0409 057 952.
What's your practice doing to help improve the financial IQ of your clients' kids? Discover how you can enhance your corporate social responsibility with the KidsMoneyRedBucketPrimary School Program. Contact firstname.lastname@example.org.
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.