Tuesday, September 23, 2008

Tippin' Tuesday

i definitely want my kids to be more $ savvy!

today we are answering a tip request from tara. she wants:

Ideas on how to teach young children about finances.

i am not the best person for this job. or maybe i am. i didn't quite grasp the money thing while growing up, and in high school started talking to friends as we were working and they were saving for college. i realized that most of them had a set amount they would spend freely--which was very small--and the rest went to various places determined by their parents. the crazy thing was, that they all seemed to understand how to spend logically and agreed with their parents on the plan. so fast forward several years, and my hubby and i are trying to teach our kids some real world lessons, so they cam be better at this whole deal than we are. some of our ideas:

*all the kids start getting allowance around the age of 5. that way they have money to work with, and it becomes real for them.
*we pay 10 cents a job. not much, but it adds up over the week to a couple of dollars for each kid.
*they must set aside 10% for tithing, and we explain how this is important to our family.
*there is no "borrowing" from mom or dad. meaning if they want a transformer, and are short $2, they have to wait until they actually have it. we have closed down the charge accounts here!
*we strongly encourage to save 10% for something. it could be nothing they have thought of yet, but just to practice the act of really saving.
*when we go shopping my kids know that we look for deals. clothes are rarely ever purchased for full price, and they are getting good at scoping at the deals! and quality is what we are all about.
*we are honest about the money. i explain why i think it's silly to spend so much money on something, and my kids share their opinions as well. sometimes we agree.

i have become better with money because i know my kids pay attention and i really want them to have it figured out long before i did. at this rate they are definitely ahead of me...i could definitely use more help in this area, and maybe you could help out tara along the way as well!


Lizzy @ The Tip Spot said...

this is a great question! here's a tip from me. we're in big time birthday party mode at our house with a 5 year old. and those gifts add up. i keep a collection of toys and crafty items that i pick up on sale for gifts. afton can choose something from my gift stash for a bday gift, or she has to use her own money to buy something else at the store.

also, when my kids get to spend their money, i take them to garage sales or used stores and show them how their money "stretches"

Lizzy @ The Tip Spot said...

one more! when my kiddos get bday or holiday money, our family rule is to save 50%. we started this young because we want our kids to be aggressive savers!