Teaching children about money can be a challenging task, but it's an important one. As a parent, it's my responsibility to teach my child about the value of money, the importance of saving, and the dangers of debt. Recently, my husband and I took advantage of a teachable moment with my son. The opportunity enabled us to teach my son about saving money and debt, and it was a valuable lesson that is still teaching.

My son is one of those kids who didn't understand the value of money. I don't think he understood why saving money was important. He often spent his allowance on trinkets or candy without considering the long-term consequences. I knew he would have to learn this lesson the hard way, so we decided to experiment with him. My husband allowed my son to borrow money from him to pay for something he wanted. The item was $100. My son had $20 but left it at home, so once he paid his $20, he was $80 in debt.

We wanted to teach my son about the dangers of debt. We needed to help him understand that borrowing money can be a slippery downward slope and that paying off debt as quickly as possible is essential. My son has had to work to earn the money to pay off the loan. He started by washing both cars, cleaning the rooftop deck, sweeping it down, wiping down and storing all the cushions, and cleaning the rails to remove the pollen. He is identifying other jobs around the house for him to make money to pay off his debt. He is beginning to understand why he must work hard to pay off his debt, but on the flip side, the more we go out, the more enticed he is. He tells himself that the balance is decreasing, so he can borrow more money to get what he wants. We had to explain that with that mindset, he will always be working from behind, trying to pay his debt, unable to save and have the things he wants. So since Mother's Day, when we initiated this experiment, he's been unable to buy anything for himself because he has no money and is in debt; he's beginning to understand the bigger picture.

This lesson was important for all of us. It's teaching my son the value of money, the importance of saving, and the dangers of debt. It also taught me the importance of having this conversation early on and the impact it can have on my son's financial future. Teaching our children about money doesn't have to be complicated. Our children need to develop healthy financial habits that serve them well. We can help our kids build a solid financial foundation that will enable them to achieve their goals and live a life of financial freedom. That's the gem!