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Teaching Kids About Money

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Teaching Kids About Money

Postby 2plus2 on Mon May 20, 2013 11:40 am

I am looking to read up on this subject, any good resources out there anyone can suggest? - or, from your personal experience that you can share... Thanks!
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Re: Teaching Kids About Money

Postby leanne on Wed May 22, 2013 11:36 am

I love allowance. The fact that they have money that they are in control of means that they can make spending decisions on the extras and I'm not always saying no... I'm saying well you have saved $x in your allowance, is this something you want to spend it on? (also makes them work on their subtraction and addition!) My kids are aged 6 (impulse spender) and 8 (tight-wad) and they both get $4 a week. They also get $1/week for charity, and at Christmas they choose their charity.

I don't allow buying candy with allowance as that is both a health decision and a spending decision, but sometimes I'll let them buy themselves a treat - they bought cupcakes last week at Uptown and my dd that is usually a total impulse spender picked a mini one (her sister had the large) because she'd recently spent $20 on a new toy at the Butterfly Gardens. I was so proud of her. She was able to think about how much money she'd spent recently, how much money she had left, and she made a choice that represented the concept of living within her means.

Neither of my girls like it if their savings get too small. They want to be ready for an emergency (aka "that is what I absolutely must have!"). They are making better spending decisions all the time. They aren't nearly as anxious to spend as they used to be. They talk about waiting for things to go on sale and seeing if they can find items used.

I don't tie allowance to chores - you do chores because you are a member of this household and we all need to work together to make it function well. I will soemtimes allow them to do extra chores for money. For example, if they break something or lose something because they are careless or irresponsible, I will make them pay for it out of their allowance. If they don't want to, they can set out a work plan to "pay" for the item that needs to be replaced.

I also let me 8 year old sit with me while I do my online banking and we discuss the money in and out. (Bank cards don't "give" you money - sadly :( , and credit cards need to be paid. I show her my family budget, and we discuss
ideas of money and living within our means. Like anything else, kids learn best if you model the behaviour, but because so much of our spending is virtual rather than cash based it is hard for them to get a firm grasp of it unless you show them the basics. I track all of my spending on a phone app. Each kid has a budget on it, and I'm always showing them how the numbers go up and down.
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Re: Teaching Kids About Money

Postby DELETEPLEASE on Wed May 22, 2013 2:36 pm

We never got an allowance, but because we grew up on the farm and my dad had his own carpentry business we got paid for the work. Chores weren't paid, but anything beyond that was paid with a wage that increased as we got older.

Worked out pretty well. Learn pretty quick about the value of things when you spent 4 hours hauling hay for some dollars.
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Re: Teaching Kids About Money

Postby 2plus2 on Thu May 23, 2013 5:37 am

Thanks so much for your replies. I share your values on "chores" and appreciate your strategies for encouraging a strong work ethic and value for a dollar!

My oldest is just 3.5 years but I am surprised at how this subject has crept up on us from questions/comments he is making, i.e. he wants more stickers so his solution is to go to the store and get more or he "needs" a new toy because one has reached its "lifespan" - again, let's go to the store to get a new one. The short side of our conversation ended with me asking him where money comes from... His response, "my piggy bank." Where does the money in your piggy bank come from "Grandpa!!" lol!!
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Re: Teaching Kids About Money

Postby DELETEPLEASE on Thu May 23, 2013 7:14 am

I like the toy lifespan angle. Future engineer there.
"Mom! My Tonka truck is approaching its MTBF, I need a new one!"
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Re: Teaching Kids About Money

Postby jessie_2009 on Thu May 30, 2013 7:13 am

I haven't been great with money in my 20's and early 30's , I hope my son will be better than me. He is very interested in money, just turned 9. We recently opened his first bank account, and he loves that he has money in there. He wants to do " extra" chores for extra money, which is fine with me. But I have told him there are certain things that come with being part of a family that he has to do, like clean his room. He doesn't get an allowance yet but I think I am going to start on that soon. Not sure how to work it though. So basically, I am not sure either how to teach this..
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Re: Teaching Kids About Money

Postby val a on Sat Jun 01, 2013 7:29 am

my children have specific chores they are to do daily. That's a given as they belong in this family and we all have to work to make it flow smoothly.
When it comes to buying them things I've always stressed to them how long I would have to work in order to make the money for the toy. I'll say "Mommy has to go to work for a whole day in order to afford this toy. Are you cool with mommy being gone so long just for this? Will you play with this toy for longer than 8 hours?"
Fortunately, most of the time they decline the toy when they realize how much extra time I'll have to spend at work and not with them....
Every time we buy something 'extra' we talk about how something has to be sacrificed - mommy out of the house, food treats, or family outings....
That's how it works in our house.....
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Re: Teaching Kids About Money

Postby DELETEPLEASE on Sat Jun 01, 2013 9:08 am

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Re: Teaching Kids About Money

Postby midnightly on Sat Jun 01, 2013 12:38 pm

we talk about money.. we talk about "daddy goes to work to earn money, money keeps the roof over our head and food in the cupboards" along with establishing how much things cost "that costs 5 moose money" (her first introduction to her own money was quarters and garage sales) then we've progressed to explaining that it takes 4 moose money to make up 1 loon money and 8 moose money to make up 1 bear money :lol: and we talk about "wants vrs needs" (you want that new toys, we NEED milk) and we talk about saving money (and ofcourse she loves coupons :lol: )

i've also put real change into her toy cash register (quarters dimes nickels pennies) for her and Canadian tire money.. because well.. i have to put it somewhere :lol:
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