Teaching Kids about Money (thank you Jodie)

[Pinky]

Okay so a while back I read Jodie's blog about how she handles money with her kids in an article called Pocket Money (http://www.jodiemiller.net/?p=65) and it got me to thinking.

I decided just last week that I needed to do this with my now 4 1/2 year old daughter. She wanted some puffy stickers. Something I don't think she needs but I can see that by not having them she is the one out at school...

So I decided.. okay she is in school now... maybe now is the time for an allowance. I never had one growing up but I heard myself saying things to her like "that is expensive, take better care of it" ...

it then dawned on me that she has no idea what expensive means. She has no idea what the value of a dollar is.. how could she possibly?

It made me realize that Jodie's article was something I needed to DO now.

okay so last week I gave her $4. so she could buy these stickers... she did.

now she wants to buy more.. she says "mommy can I buy ..." I say "do you have any money" "no" "well then I guess you can't.. you'll have to wait until next week"

already I'm feeling the joy of this system. My NO is not about Me saying NO to HER.. it is about the natural consequence of her not having any money.

The other added bonus is that she bought this sticker album and a few stickers and she is taking all the stickers off and sticking them in the album and to each other and just playing with them that will result in their loss of sticky... but it is HER money. it is HER toy... and I feel much less stressed out about it getting ruined.

I don't nag her to pick it up. she's had it all of 3 days and the outside is already all scuffed and scratched and I don't find myself nagging her to keep it nice...

when it breaks or is no longer pretty.. it is HER problem. if she wants a new one SHE has to buy it.

I have to say it is very .. what is the word? releasing? no.. can't think.

I also thought that maybe this is WHY I have such a bad relationship with money.. I never had an allowance. I was never taught how to manage it. If I wanted something I asked.. if it was deemed acceptable it was purchased for me. Not that we were rich sometimes the answer was no.. but I wasn't involved in the decision making.. I got it or I didn't.. no saving no budgeting.

Now as an adult if I want something and I have the money I buy it. Saving is not my forte.

I hope I can learn a lesson with her.. maybe give myself an allowance and see what I can learn? I'm not sure that is a bad idea.

Thanks Jodie for making my brain snap a few synapsis!

[cherish]

I need to do this with my children as well... thanks for the reminder!

[jodiemiller]

So glad it helped. Can't take all the credit though as it really was hubby's idea at the very beginning and I was the one putting up resistance saying, "They're too young for pocket money." :blush

[skn]

Funny, I was just thinking about this yesterday! I've decided to start giving DD1 an allowance...she doesn't really ask for much (well, except for big ticket things :blink like a computer).

I also enlightened by the blog- thanks Jodie! Always a good read (I will comment on it one day!)

[cherish]

just gone and read your pocket money blog.. will talk to their Dad about it.. but I think it's something I'm going to start doing as of next week..

love what you said about your little one changing his mind.. gorgeous!

[Pinky]

I have to say it is very .. what is the word? releasing? no.. can't think.


LIBERATING! that was the word I was thinking of!

[Stardust]

It is a good idea. We do it with Molly too, and it really does help them see no money=no buy!

[Rinelle]

We've been doing this for the last few weeks with Ezri (tried it earlier but without success), and I agree, it really does work better. She's thinking more about what she's buying, and not just grabbing the first thing she sees. Hers usually gets spent at the markets (I give it to her that day on purpose, LOL), so she gets more bang for her buck.

[Harmony]

*opens Jodie's blog to read later*

I started giving H some pocket money a little while ago. $1 for her moneybox which goes into her bank account for when she leaves home/buys a car/goes to uni. $1 to save up for larger purchases like toys and stuff. 50c for weekly spending, although unless we get time to go to the op shop, she rarely spends that, and she just accumulates that to make her saving money grow faster. I'm very reluctant at the moment to just let her buy things as she sees them and has the money - we talk about the environmental and ethical impact of all the plastic crap she wants, and thank goodness she's not bought a lot of junk yet :)

[Aine]

ok so now i need to go read...

[Pinky]

//- we talk about the environmental and ethical impact of all the plastic crap she wants, and thank goodness she's not bought a lot of junk yet //

so do we.. and NESTLE.. oh my god.. why do they make all the bars kids like?

so now she has her own money SHE has to make the choice. She wants these stickers.. not terribly environmentally friendly but by god she plays with them everyday, she uses them... so well... that's her choice.

when it comes to kit kats and smarties.. I'm afraid I'm going to lose that battle for now.. but I hope by watching that mommy doesn't buy that stuff.. and nothing that is owned by nestle. (no body shop, no loreal, nothing from any affiliate company) she knows why.. when she gets older maybe she will follow.. or maybe she won't but I do know that I can't force her to follow... she will be resentful.

if she wants to buy a kit kat with HER money.. then I guess that is her choice.

[SpringMumma]

I started doing this with DD1 a few months ago. She gets her age in dollars (so she recently went up to $6) every fortnight (my payday). If she wants something, she has to have the money for it. If she wants to blow it on stickers or a comic book, then that's her choice. Like Pinky, I've found this rather liberating when we go out - if she wants something I simply ask if she has the money for it? If not, then perhaps she should save a bit more and can get it another time. I'm no longer saying no from me, the no is coming from her wallet.

I need to do more with her on this though - set up some proper savings with her so she's more on track to buy a big ticket item so that she really sees the value of saving instead of spending.

And I have limits on what she can buy - generally she's not allowed to buy lollies, no bratz - I guess nothing that her father or I wouldn't buy for her.

Will come back later and read your blog Jodie.

[jodiemiller]

I'm glad to see the principles are working for others, or being adapted to suit individual family needs and ideologies.

For me, the whole point is letting my kids come to their own conclusions about ways to save and spend money. We do urge them to set some money aside in a jar in the months preceding Xmas or significant birthdays, but otherwise, it's up to them how much they spend or save. Currently they are pooling their pocket money with a goal to buy a Wii for Xmas so this year is structured a bit differently to previous years. But I do think it is important not to interfere too much in their decision-making or the lesson is undone. They do have to be allowed to make a few mistakes with their money. That's where the real lessons are.

[Pinky]

it is hard though..letting them make their own mistakes.... we know so much better after all (kidding)

already my daughter's sticker book is being left at the door, pages open, stickers on the floor. I don't think she's quite got the idea yet.. but it is early days.. after a few months I hope it sinks in about how she gets only so much money and that is that.