Money Might Grow on Trees
A few weeks ago, I was taking out the trash. I went down to the garage with my girls entertained with Max and Ruby. When I came back up, not 5 minutes later, they were watching 8 Mile (with Eminem) and they were watching it On Demand for $2.99. My oldest didn’t realize that she spent money, and couldn’t quite grasp the concept when I explained it to her.
How about today, when I went upstairs to find my daughter searching the iTunes store? I, again, tried to explain that things cost money, but all she understood was that she gets what she wants by pressing a button.
Growing up, my mother and father always gave themselves on allowance. To this day, they have never had an ATM or a debit card. They walk into the bank and make face-to-face deposits with the tellers who know them by name.
In our household? I rarely carry cash, I use my debit card for everything. This works for me, but how am I supposed to teach children the value of money when they never actually see it in use? The concept of online banking and debit/credit cards isn’t something that a 5 year old should understand.
I desperately want my girls to understand the value of money and the importance of saving for something you need or want. My oldest is in a bit of a ‘gimme’ phase. She wants everything she sees. She NEEDS everything she sees. I do my best to explain that we make a certain amount of money, and some goes here…some goes there…and some gets saved. That leaves a small amount for other things, but not for every single thing that we want. It doesn’t really sink in. Is it possible for them to understand this at all? Can I effectively teach them to manage money without putting a set amount in an envelope and writing everything I spend on the outside like my mother did?
I’m curious what others do to ensure that your kids grow up with a sense of money and budgeting. Anyone?
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Posted by LZ on April 2, 2010
Filed under: Daily Life, The Monsters, When I stink at my job
Tags: allowance, budgeting, kids, money
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April 2, 2010
We tried an allowance for my oldest , but that didn’t last long. Now, my husband just puts his change in a jar. Once it gets filled, he and my son go to one of those coin counters and cash it out. If he wants something special, like a video game or something, he can use that. Can, not always does, but can.
C @ Kid Things´s last blog ..The Joe Camel of the Preschool Set
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April 2, 2010
I wrote a post about this a while ago. My daughters have very different approaches to money, and what has worked for one has not worked for the other. My older daughter saves and shops for the best deal and has a very clear understanding of budgeting. My younger daughter spends every single cent she has as soon as is possible in whatever store she happens to be in. She has purchased a bag of miscellaneous screws at the hardware store just because she couldn’t stand not buying something. How can financial responsibility (or lack of it) come hard-wired?
No answers here.
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April 2, 2010
Whoa… wait… there really is no such thing as a money tree? WHAT? Next you’re going to tell me Santa is not real!
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April 3, 2010
I sooo get this, but luckily for me, my kids are older than yours! ha,ha. No, seriously. That’s a tough concept. We do the allowance thing, make the kids put part into a bank account & then let them carry cash for small purchases. Oh & we make them tithe as well so that they learn that concept too. I’m still not certain as to how well it works, but @ least we feel that we are doing something.
When I was a kid I remember my parents setting us down & bringing out some manila envelopes w/ things printed on them like “house, lights, heating, gas for cars, taxes, groceries etc…”. Then they put my dad’s paycheck all in cash on the table & proceeded to divide the money into the envelopes. I remember being shocked @ how little was left. Of course this was back in the 70′s too, & easier to do than today where like you said, we all carry debit & credit cards. Good luck!
Sues2u2´s last blog ..Another tummy ache but good news!
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April 3, 2010
You make such a good point! I don’t have a clue what to do about it. We only have cash when we get a babysitter which is never. LOL!
Connie @ Young and Relentless´s last blog ..Me and My Peeps…Waiting on the iPad
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April 4, 2010
I will be anxious to read all of the responses to this post. I have a 6 year old and we’re having a terrible time with the value of things. You’re right, there’s no such thing as cash any more, so the debit card is a magic, never-ending source of purchasing power to him. I wish I had even a suggestion.
Meg at Demanding Joy´s last blog ..Changing the Subject
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April 4, 2010
Twitter: CoffeesCommutes
My oldest has his own piggy banks and when he wants something we remind him he has to save for it or suggest he ask for it for his birthday/Christmas. We’re in the early days yet, but it’s something we plan to stick with as he gets older. Another rule we’ve had that seems to work so far is we almost never buy him things when we are out together. The only time we break the rule is for clothing and books. We’ve never bought him a toy when shopping together. Whether it has worked or not, I can’t be sure, but he rarely asks for things when we are at a store, so I figure something’s working.
Christine LaRocque´s last blog ..The perfect day
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April 5, 2010
too funny that you wrote this…my parents are EXACTLY the same as yours…still walk into Lowell 5 every friday & deposit some of their checks & get cash back…no checking account or atm\debit card…envelopes for house bills, groceries, extras, etc.. I on the other hand like you never have cash & always use my card to pay for everything, both my boys know this too…they want something, I say I don’t have $ for that, they say just use your credit card!
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LZ replied:
April 5th, 2010
must be something about that bank!
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April 5, 2010
Glad you posted this – both boys have piggy banks and we’re getting ready to go through the motions of counting it, depositing some at the bank, and then letting them buy something special with the rest. I’ll let you know how it goes and if it sinks in.
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April 5, 2010
Twitter: SassyModernMom
I hear you. I too rely heavily …way too heavily on the debit card. My girls (now 8 and 11) have allowances now and can earn extra money for extra chores (read doing the things I really don’t want to do like pooper scooping) They are learning to save up for those special things!
ModernMom´s last blog ..Ramblings of a Woman Crazed by Chocolate
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April 5, 2010
Twitter: noreturnmom
I want to be more subtle about money issues than my parents were. That’s all I know for now. I don’t want them to fee our stress or to feel responsible for it. At the moment, my 3 year old has a good attitude…Explained to me in Target the other day: “Annie always wants stuff. Sometimes we get it. Sometimes we say, ‘sorry, not today.’ ” Of course, when he wants something, it’s a slightly different story.
Deb´s last blog ..Breaking news: I can’t do all this by myself
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April 6, 2010
Twitter: mommyiscranky
Most of the time I do not purchase anything, and I mean anything, at the store for my kids. They don’t even usually ask anymore and when they do I tell them not today and they rarely ever whine about it. That’s just the way it always has been. The oldest is 6, so I’ve got plenty of time to see just how effective it really is, though! I also try to point out how commercials are trying to trick us. When my then 4yo wanted a doll because she insisted, despite all I said, that it would blow strawberries out of its mouth and my parents bought it for her, she learned that lesson very well and still brings it up when a commercial seems too good to be true.
Cranky Sarah´s last blog ..Hi-ya!
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April 7, 2010
Ah good question! Like you, I rarely carry cash anymore – it’s all debit card purchases. I remember each week when I was little (like 7, or younger even) my parents would give me a small allowance like one pound (GBP), and I’d be able to take it to the toy store or save it. It’s tough because you’re trying to teach one thing, and yet sending a different message through your own spending habits. Hmmm. Where’s that instruction manual?
Lady Mama´s last blog ..Friendliness and the cynical parent.
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April 7, 2010
We give our oldest, who is 12, a weekly allowance of $10. We live in a small town so he really doesn’t need lots of money. We ask that he save 10% for church. Save %10 for his own personal savings account, and the rest he can do as he pleases. It’s worked fine for him and us so far.
Hugs and Mocha,
Stesha
Stesha´s last blog ..Blogging Tip Of The Week: Read Before You Comment
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April 7, 2010
Twitter: mommywords
This is a tough one because I am in your boat – I NEVER have cash. Sophie earns quarters for doing chores and stuff but at 4 we are only 50/50 on when she gets it is moey and when she throws it in her dress up purse. We make her give is said quarter when she asks for a lollipop or something from a store but so far I am just hoping I have a better plan when she gets older. Good luck!
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