Guest Post: Teaching Kids About Money – Saving

Teaching Kids About Money – Saving

Even before kids get an allowance, money comes to them. The receptionist where we go for haircuts slips each boy a dollar, grandparents send a little money on a birthday, even pennies dropped on the street are cause for glee at our house. So is that money “theirs?” Can they really spend it on whatever they want? Not quite boys…

We want our kids to learn to earn, to spend and to save.

A few years ago my dad got each of the boys a piggy bank. There is possibly no one on earth more fiscally responsible than my father. He wants to spoil the boys (why else to have grandchildren, right?) but he wants to teach them as well. So these piggy banks have four slots each leading to separate compartment.

So how does it work? 10%-30%-30%-30% Last month my 9 year old earns $10, as he did recently when he cat-sat (not as fun as it sounds!) for our friends for a week. He walked the half mile to their house every other day, put food and water in the bowls, cleaned the litter and checked the floors for accidents.

With his hard-earned $10 bill in his fist, he came to me to change it for singles. One dollar into “Donate” to Heifer International, his favorite charity of all time. Three dollars each into spend, save and invest.

Spend. He can do with this money as he likes, as long as he doesn’t buy anything forbidden. In our case that means no gum, no sweets unless he asks, and all video games have to be pre-approved by the powers that be. If he blows it all quickly or gets something cheap that breaks immediately, those are great learning experiences.

Save. This money can’t be spent spur of the moment. The purchase has to have been planned and
thought about in advance. It’s like the cooling off period required before buying a weapon. We hope to encourage perseverance and thoughtful purchasing.

Invest. This goes into the real bank. Great math and conversations about interest rates!

Thanks to my Dad, our kids will not be shocked that they can’t just spend all the money they earn. And they know we can’t just spend all the money we earn either. It sure gives them good ideas about how to earn more!

Dr. G (Deborah Gilboa, MD) is a Board Certified family physician, mother of four, and a professional parenting writer and speaker (for parents, community & business). Her signature individualized workshop, “How to Get the Behavior You Want, Without Being the Parent You Hate” captivates parents through her humorous straight talk, which lifts the guilt out of parenting. Her mission is to help parents raise children they can respect and admire. Visit her website or drop her a question!

 

About Slop Swap

Comments

  1. Great post! I think it’s important for kids to have enough money to be able to learn these lessons. $1 here or there isn’t enough to really save for anything important. For my 7 and 10 year olds I’ve decided $10 per month is enough that it’s not ridiculously huge (therefore allowing them to buy whatever they want), but it’s enough they can save for a toy or video game or buy fake nails for $7 and it’s blown (my 10yo is guilty of this). Whatever your dollar amount I definitely think teaching your kids about fiscal responsibility is crucial!

    • Dr. G says:

      The dollar amount is really less important than the predictability and teaching, that is for sure. When kids know that they have a certain amount of money coming in, and that is ALL, they start to learn the principals behind planning and budgeting. And it should cut down on some of the whining for stuff!

  2. Dr. G says:

    I’m so pleased to be here on Slop Swap! A big thank you to Dawn for having me!

  3. 640628 292154No a lot more s . All posts of this qaulity from now on 284913

  4. 639829 28423Gratitude for building this send! I in reality recognize the no cost information. 79342

  5. 652680 505382I located your weblog internet web site on google and check several of your early posts. Continue to preserve up the superb operate. I just further up your RSS feed to my MSN News Reader. Looking for forward to studying extra from you in a although!

  6. Blog for men says:

    641095 442381But a smiling visitant here to share the love (:, btw great style and design . 789184

  7. 624007 91349I

  8. I just want to say I am just very new to blogging and site-building and definitely savored you’re web page. Probably I’m want to bookmark your website . You definitely have terrific articles. Thanks a bunch for sharing your web page.

  9. 108523 464445I truly enjoy seeking by means of on this internet web site , it holds superb content material . 597353

  10. 771031 418694I just added this webpage to my feed reader, excellent stuff. Cannot get enough! 401726

  11. I believe other website proprietors should take this site as an model, very clean and excellent user friendly design and style.:)

  12. Wonderful article! I wish I had your insight on this issue and could write as nicely as you. I trust many people have the chance to enjoy this great content.:)

  13. This site has got lots of extremely helpful information on it! Thanks for sharing it with me! :)

  14. Dwayne Daves says:

    You’ve got shared the most beneficial collection ever. “Sleek Minimal PSD Website” is genuinely an incredible PSD.

  15. 605878 920004For some cause the picture just isn

  16. Nice blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustements would really make my blog shine. Please let me know where you got your design. Thanks. :)

  17. 752852 680928If you are nonetheless on the fence: grab your favorite earphones, head down to a Very best Buy and ask to plug them into a Zune then an iPod and see which 1 sounds greater to you, and which interface makes you smile far more. Then you will know which is appropriate for you. 463853