This past summer we decided to begin teaching E&M about the value of money. They would see things that they wanted in the store, but of course they don't yet have a sense of how much things cost or how much time it takes to save up enough money to buy the things they want. An article in the Money section of the newspaper awhile back gave me this idea on teaching children about money.
Each Friday is Payday. They each get three $1 bills. You can call it their allowance but these three dollars are not for doing their chores, it is money we are giving them as a tool for learning. They still have to clean up their toys, put their shoes away, etc regardless of money or no money. I do allow them to do "chores" for an extra dollar if they want to...it's not expected. For example, they have folded all the washcloths/socks/underwear in a load of laundry -or- they have dusted my entire bedroom by taking everything off the dresser and dusting it then putting it all back. M this past weekend used the screwdriver and unscrewed all of the "cabinet-locks" and put them away. As weird as it sounds, they LIKE doing this! So I say, "go ahead!" But they have the choice to say no if they don't want to. On payday each of the one dollar bills goes into one of three sections in their bank. We have labeled them Save, Give, and Spend. The money in the Save bank does not get touched, the money in the Give bank is for the collection basket at church each week, and the Spend bank is their money to do with as they please. No "credit" is given, ever.
They've been doing well with this system until today. M had enough money saved in his Spend bank to buy a toy car he wanted which was $12. E wants a baby doll that costs $25 and doesn't have enough money yet. She was very upset that he got something, and she didn't. Big tears! She doesn't think it's "fair!" I told her that she could pick a toy that costs less and would then be able to get something "today." But she wants that baby and she wants it now, but she doesn't have enough money. No credit here. She even tried to put her "entire paycheck" into the Spend bank today (and got in trouble for this!).
And so after today's "lesson", I think that yes, this system of ours we have implemented is working. We are teaching our kids how to be responsible with money so that hopefully when they are older, it will be ingrained in them that if you don't have the money you need in order to buy something, then you CAN'T buy it!!! And hopefully they will be responsible with their money, never be in credit card debt, and realize just how long and hard you have to work in order to buy the things you want.
3 comments:
Too great! I love this idea! Make sure to remind me about this in a few years.
I'm glad that you are not caving amd giveing credit!
Good job Mom and Dad...you are helping them make great choices!
It sounds almost identical to KidsWealth. But they have 5 categories...wealth (30% for long-term savings), plan (20% for saving for an expensive item), learn (20% for books and educational activities), fun (20% for whatever they choose) and angel (10% for charity). We had gotten it for Caleb a year or two ago. But Caleb doesn't ever want to spend any of the money. Which is obviously a good thing but he hasn't quite gotten the concept of it all...especially when we are at the store and I ask him if he brought money. For his birthday, my mom sent him 7 ones to spend. He got all upset when I told him to bring it to Target with us...No mommy, that was a gift, I can't use it! The only thing he will use are gift cards...gets a real thrill out of that. I guess I will have to start paying him in gift cards! LOL
Glad the kids are enjoying it. It is always good to start them early. We have decided that when he is about 10 we will start taking him to our financial adviser and let him start learning and seeing how we are already investing some of his savings and college money so he will understand the principles very early.
I wish I had known more about those things much earlier in life. I do remember having a savings book that got stamped...mmm, wonder where all those millions of dollars are??? LOL
this IS a great lesson ... we do it with connor and carson too. should probably start curtis soon. you're a bit more conservative than us though! We do 80%/10%/10%. I guess always just thinking that's pretty much how "big people" live (not that 80%gets to go to FUN stuff!!!!) Maybe we need to up the ante on the boys!!! We do, however, have them do WORK ... and Curtis is the only one that enjoys it and wants to do it and he does it for free!!! :)
Post a Comment