This post was underwritten by BMO Harris Bank, which offers a matching $25 on a new savings account opened for your child through their Helpful Steps for Parents program. Learn more at bmoharris.com/parents.

I have found that teaching kids about money is very challenging. Especially when, like us, you live in an area that has income levels that are well above average. This has given my children (and us, actually) a very unrealistic idea of what is a ‘need’ as opposed to a ‘want.’ For example, my eight year old daughter’s Christmas list includes an iPad and “real Uggs, not the fake ones.”
I really, really wish I was joking about that.

So what do we do? How do I teach my kids to value money when they are surrounded by people who throw money around? When I indulge them so often with books at Barnes and Noble or that small toy from the dollar section at Target?

First we started giving the kids allowance. But that didn’t really help. They just liked to sit in their room and count their money like Scrooge McDuck. Then we went on a spending freeze. Mommy and Daddy stopped buying them books, toys and general whatevers in the store. Boy, did that get their attention. If they really, really want Pokemon cards, they need to look at the price, look at their $2 a week allowance and decide if its worth it.

Initially they were blowing through they allowances as soon as we stepped foot in Target. But now, after 2-3 months, they are saving their money. Ellie decided she really wants an iPod Touch. Much cheaper than an iPad and more her size. She is saving her money to try and get a used one. My other daughter has started saving for another American Girl doll. I was amazed that they set their sights so high! I was expecting them to save $10 or so!

Our other lesson with allowances is how to give. They tithe their allowance to church the first Sunday of the month. Then, every year at Christmas, we all give a portion of our Christmas money to buy a farm animal for a family in need. It is so simple, but I cannot even describe how this has affected my kids. We watched the videos of how a single goat can save a family from poverty in Africa.  I remember them saying, “What a cool play house!” And I had to explain that the tiny house with the dirt floor was that family’s home. They were truly amazed and humbled that they could make such a difference in a family’s life with so little.  And they were instantly excited to help. They gave so generously last year – they were able to buy a goat!

This year, when the catalog arrived, they were looking through deciding what their goal was - maybe a sheep or some ducks? Then they came up with an idea. If we got more people to give, we could buy even more! We should get our friends involved! Long story short, our girls are organizing a bake sale on December 5th to raise money to buy farm animals for Africa. They are working with about 20 kids and planning a huge sale. Their goal is to buy a sheep and a goat.  I can not even tell you how proud I am of them! Not only are they excited about giving, but they are mobilizing their friends to do the same.
I was selected for this sponsorship by the Clever Girls Collective. To learn more about BMO Harris Bank, visit their website http://bmoharris.com/parents.