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Are your Children learning??

Date: Sat, 10/15/2005 - 10:07

Submitted by MsMistchf
on Sat, 10/15/2005 - 10:07

Posts: 41 Credits: [Donate]

Total Replies: 5


Although I've had to get help for MY financial situation I wanted to share with everyone how my kids handle their finances. I'm hoping that having them manage their money in this fasion, they'll carry it into adulthood with them!
Each of them have a lockbox with their own key. Inside they have envelopes labled "activity", "savings", "donation", "gifts",
"me".
They each have a calendar with their daily chores listed. Depending on their age and responsibilities they get a dollar amount each day that they complete them. If they do extra work a certain day...they write down the amount they earned. At the end of each month they are paid for the month and they divide the money as follows: first comes out activity (a set amount depending on their age), 20% to savings, 10% to donation, 10% to gifts and the balance to "me".
Even for a 10yr old it seems like a lot of money but it puts the spending responsibility on them. They purchase everything themselves within the guidelines. For instance activity money cannot be used for candy, cokes etc. Donation money can be spent at any time in any way they want, as long as it is a donation ie, if they want to put it in the church weekly they can or save it up for a different type of donation. One of my boys took his donation money one time and paid the fee for one of his classmates to go on a field trip!! Another bought a "dolphin" by donating his money to an environmental agency. They have lots of fun with it and get very creative. If they want a lift pass for snowboarding.. they save up their activity money for it. If they have a birthday party to go to..and their "gift" fund is low they can borrow money from their "me" fund if they want to buy a more expensive gift. The "me" fund is the only one that has no restrictions. That money can be spent in any way they want.
So my kids have a good sense of finances and I make them stick to it..now I just have to do that with me!!
How do your children handle finances?


WoW!! MsMistchf :D

This is a very good lesson that your children are learning at this age. Financial awareness comes right from this age and has to be implemented in school, colleges and even at home.

As your children are getting habitual on how to handle finance properly, I predict that they will grow as responsible human beings in the future. It's said that "A child is the father of a man". This is being proved at your home and your children will teach many things to many others in this way.

My kids also have a "piggy bank" unlike yours who don't distribute money into different categories. But they understand the power, money has and also, the weakness it can put you into. They keep depositing money in their piggy bank and we deposit funds in their name in their bank account.

I always try to teach them not to live on credit. It is good only if you have cash in your reach. Credit should be used for emergencies, not for fancy purposes.

There are some items in our home specially purchased on the request of our kids by their money. When we use those things in our daily life, these kids make us realize how money should be properly used. I hope that our next generations never have to go through debt problems as we all are going through.

Regards
Roxette


lrhall41

Submitted by roxette on Sat, 10/15/2005 - 11:52

( Posts: 4009 | Credits: )


Thanks Roxette...I forgot to add that one of them got interested in the stock market and actually started an online account with his "me" money. Yikes!! We both learned some things on that one. For the most part he stays in solid stocks that don't have a lot of variation but sometimes will do things with the profit he has made. Like when Cingular bought ATT.. he obviously didn't have that much in but was amazed at the way it went up!!


lrhall41

Submitted by MsMistchf on Sat, 10/15/2005 - 15:02

( Posts: 41 | Credits: )


My best friend growing up always saved her money even as young as 6 years old. I don't think she was ever taught this, but it was more innate to her...just part of her personality. I always spent my money on candy and chips and soda and whatever else. I am in a lot of cc debt & struggle with bills and she bought a house at the age of 23 while still going to college. So I guess good habits when you're young do follow you into adulthood.

-Sarah :)


lrhall41

Submitted by shopaholic5 on Wed, 10/19/2005 - 13:03

( Posts: 281 | Credits: )