As has become customary, I am going to repeat a theme that I write about every year: how we should use Hanukkah to teach children about responsible money habits.
Rabbi YY Jacobson tells the following joke: “One autumn the Indians in a remote reservation asked their new Chief if the winter was going to be cold. Since he was an Indian Chief in a modern society, he had never been taught the old secrets, and when he looked at the sky, he couldn’t tell what the weather would be.
Nevertheless, to be on the safe side, he replied to his tribe that the winter was indeed going to be cold and that the village members should collect wood to be prepared. However, being a practical leader, after several days, he had an idea. He went to the phone booth, called the National Weather Service, and asked, “Is the coming winter going to be cold?”
“It looks like this winter is going to be quite cold indeed,” the meteorologist at the weather service responded. So the Chief went back to his people and told them to collect even more wood to be prepared. A week later, he called the National Weather Service again. “Is it going to be a very cold winter?”
“Yes,” the man at National Weather Service again replied, “it’s definitely going to be a very cold winter.” The Chief again went back to his people and ordered them to collect every scrap of wood they could find. Two weeks later, he called the National Weather Service again. “Are you absolutely sure that the winter is going to be very cold?”
“Absolutely,” the man replied. “It’s going to be one of the coldest winters ever.”
“How can you be so sure?” the Chief asked. The weatherman replied,“The Indians are collecting wood like crazy.”
Educating children with respect to money
HANUKKAH IS here. So are sufganiyot. So far, our favorite has been the pink-sprinkled cookie monster. Nothing says ‘Hanukkah’ like pink sprinkles in the shape of a Sesame Street character!
It was four weeks ago that consumers around the world were blitzed with Black Friday advertisements. We were urged to whip out our plastic and start shopping because, well, everything is on sale. Do you need the item? Can you afford it? Hey, it doesn’t matter; it’s a Black Friday doorbuster, and you can always pay with debt.
The proximity of this global shopping spree with Hanukkah can serve as a reminder of how we must educate our children (maybe ourselves as well) with respect to money. Children are confronted with some very negative messages regarding money. Spend money, buy things and you will have happiness. We are continually sold the fantasy that more and more things bring bliss. But it just isn’t true. More ‘things’ don’t equal more happiness.
We need to fight against this prevailing culture of fiscal irresponsibility and teach our children the proper role of money.
Start teaching by using the message found in the Hanukkah gelt!
What does it teach?
There are many opinions as to the reason for Hanukkah gelt. According to Magen Avraham, the custom of giving Hanukkah gelt enabled the poor to get the money needed to buy candles without feeling shame.
I have another answer. The concept of giving Hanukkah gelt is conveyed in a passage in the Code of Jewish Law (shulchan aruch), where it states: “It is forbidden to derive any benefit from the lights of the Hanukkah menorah… even to use the light to count your money.”
We may ask why the phrase “count your money” is used here specifically. The reason for this is found within the word “Hanukkah”, which is the root of the Hebrew word chinuch, education. Hanukkah is a time when we celebrate the Jewish people prevailing over the Greek Hellenists, who sought the spiritual destruction of the Jewish people.
Today, this culture is based on consumerism and instant physical gratification, and it is as much of a threat to our existence today as Hellenism was to the Jewish people. The symbol of our culture is money.
A child needs to know where the money comes from. To a child, it seems as if money is always available. When their parents run out of money, they simply go to a small machine in the wall, punch in a few numbers, and take out even more money. It’s magic. It’s even worse when the child sits next to a parent deciding what to buy online. In such a case, forget about taking cash out of a wallet, even if the credit card doesn’t come out. It’s as if you are buying for free. There is no concept that it costs money.
Giving to charity
For this reason, the first thing to tell our children to do when they receive the Hanukkah gelt is to give charity. Then, we should talk to them about saving. Ask your child what she would like to use her money for. If she wants to buy an Xbox or a cellphone, explain that she should save up her money. Children need to understand that money is earned through honest, hard work. With older children, long-term savings can be discussed. Money earned from babysitting or other work can be invested.
We give Hanukkah gelt to educate our children on the importance of giving charity and doing good deeds. They need to learn that this money should be used for constructive purposes and that the pursuit of money for its own sake is not the point of our existence.
Teaching our children good money habits is a good way to beat back the forces of the modern-day Hellenists and internalize the message of Hanukkah.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is the author of the book Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, FSI. For more information, call (02) 624-0995, visit www.aaronkatsman.com, or email aaron@lighthousecapital.co.il