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Do you talk about money with your kids?

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How are you teaching them the value of money?

butterfly

by on Jul. 25, 2012 at 11:51 AM
Replies (11-20):
jimbosmom
by on Jul. 28, 2012 at 2:41 PM

BUMP!

lruggio
by New Member on Jul. 29, 2012 at 8:42 AM
2 moms liked this

I am using envelopes.  I have "hired" my son to work an hour each day for me. I give him a list of certain things I know he can do within that hour.  its not much, just enough to where my life is easier and he is earning his first "paycheck".

His payday, is my payday.  Every other week, he gets paid and I pay him 5.00 per day of work.  So, he is quite happy when pay day comes around.  I pay him in dollars so he can see just what he has earned.  So, we go to the envelopes...He must pay himself first, so his envelope that is marked "savings" gets the first deposit.  He writes the date on the outside envelope and he writes how much he has deposited and he does the math to get the updated balance that is inside the envelope. Each time he reaches 100.00, we go to the bank and deposit it into his true savings account.

After he pays himself, he must put money into his envelope marked "necessary money"...because now that he has a "job", he can buy necessary items that he needs...for school, for his personal use, whatever it is that he is in need of he can get that himself now.  What he has left over goes into his "fun money" envelope.  He can get his toys, his video games, go to the movies, get candy...whatever he wants, this is the envelope he uses.  each time he deposits money into his envelope, he records the date and how much was deposited and writes the new balance...just like he is keeping a check book.  If he spends money, he records what he spends and updates the outside of the envelope.

It is teaching him to prioritize things, seperates his money so he does not go through it all, teaches him what money feels like to have some, lol....and gives him incentives to work for it, save up for things and when the money is gone, then it is gone and he must continue to work in order to be paid....soon, we will add other ideas to the envelope system but for now, this is how I have started him off.

diaperstodating
by on Jul. 29, 2012 at 11:15 PM

Yes I do. My older two are 14 and 10.

Lindalou907
by on Jul. 30, 2012 at 12:05 AM

Mine are all good savers,I made them save 20% of every dollar they ever received.

mommyladnad
by New Member on Jul. 30, 2012 at 9:23 AM

Yes, I talk about money with my kids. 

My six year old knows all of the coins, how much they are worth, and how to count change. He knows that everything costs money and the difference between NEEDS and WANTS. He knows that money has to be earned, and that he can choose to save his money or spend it, but that he cannot buy things that he does not have enough money for.

He has two types of chores: must do chores because he is part of our family and we work together to keep our home nice, and Choice Chores, which he gets to earn money for when he chooses to help with them.

When he WANTS something, like a toy or video game, he had to buy it with his own money. If he doesn't have enough yet, then he saves up for it. When he NEEDS things like clothes and shoes, I buy them for him. 

This system is working out great for us. He totally understands that he can't have stuff that he cannot afford and he appreciates occasional surprises if he happens to get something as a gift or if I buy him a toy, etc. He also takes excellent care of the things he has because he knows that they cost money and he will not get another one if he breaks/loses a toy or game unless he saves up to get another one himself.

My three year old is a little young, but we will be doing the same with her when she is old enough. 

I also talk openly about money and how much things cost. Tell him about how much we can spend on groceries for example, and let him help me keep track while we are shopping. When he asks me for a treat at the store, I let him help me decide if we have enough money for it or not. 

He likes doing this with me and i hope I am giving him the tools my parents did not give me. I made tons of mistakes when I was in my late teens and early twenties that took me years to correct. I hope that by giving them a solid foundation and understanding of money, they will make better choices than I did! 

Reina13
by Member on Jul. 30, 2012 at 12:01 PM

Yes we do. We have taught them from early on that money must be earned and used only for things that are necessary. That extras are to be budgeted for.

Reina13
by Member on Jul. 30, 2012 at 12:03 PM

These are good lessons you are teaching them.

Quoting FindersKeepers:

The kids are 12 and 16, they have to work for any extra money.  They have savings, checking accounts and debit cards that they are responsible for and learning how to manage.  Some things you just have to learn the hard way (DS learned what an overdraft fee is).    I also make them learn skills to manage things they will have to do for themselves in the future.   Since DS is 16, when he needed to check in for a flight/pay bag fee and pay the registration on the car he drives online.... I put money in his account and had him do everything himself with my oversight. 


itsblissmas
by on Jul. 30, 2012 at 12:12 PM

 My oldest one is almost 5 and he has a basic concept of money. He knows what each coin is called and he knows dollars are cool. I just them both a crayon bank so they can have their own money. I have a huge crayon bank so they understand that part of it too. =)

itsblissmas
by on Jul. 30, 2012 at 12:15 PM

 Mine does this too only he hasn't bought anything for himself yet so he gives the cashier money to pay for things like groceries. Even though it's not "his" I want him to understand that we PAY for items before leaving the store or before using it!

Quoting JSKKP831:

Yes, I do. When they have earned money I give them the option of saving it and explain that by saving their money it has the potential of growing so that they can get something that costs more or they can spend it on something that is less than what they have. I taught them that even though they have $5 dollars they can get something that is $4 dollars because they have to pay tax on the item. Whatever change is left over can go in their piggy bank. I make sure to have them hand their money to the cashier so that they understand that they have to pay for the item. My children are 4, 6, and 8. 

 

wahmx3
by New Member on Jul. 30, 2012 at 1:08 PM

I am trying but I might as well talk to the wall some days.... my kids are 18,15 and 10. My 18 year old spends as he makes it, I think he is slowly seeing the light as he will be in college this fall. My 15 year old dd will save for a bit and have an iten in mind but she easily changes her mind and will but something else or spend it on junk and food. My 10 year old son, gets the saving thing and will do it. This year alone, he has bought a video camera, ipod touch and a new bike, all with his own money from having a paper route and collecting bottles/cans at the campground we camp at every weekend. He will spend some on junk and candy but he realizes how hard he works for his money. Funny how teaching the same thing to each child, and yet each child is so different with money.

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