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3) Teach kids about how to earn money (I don’t like monthly stipend, I want my kids learn how to earn money by meeting people’s need, rather than becoming an entitlement). So, maybe $1 for taking out trash daily, I haven’t thought through this yet. It will start with earning my money, but eventually earning money outside by looking for “work” opportunity (e.g. I can teach them writing codes and they can do freelancing).
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I’m trying to do this right now. Mixed results. 3rd/4th grader earns $2 for doing the dishes and emptying the trash into a bucket per week. Anything extra toy,craft,game,etc that the kid is responsible for using their own money. I have my kid record what goes into the piggie bank, what comes out, and when I forget to pay up, to send me note that I haven’t paid yet and am overdue. Mainly for the kid to start thinking about how much things cost, and what really is “necessary”. Doesn’t always work. [/quote]I personally don’t like the idea of allowances. I expect my kids to be contributing member of the household. Which mean it’s expected that they clean up after themselves and help keep the family/household running. I don’t want them to get into a habit of thinking everything they do for people and contribution to the running of the household equate to a $. There are plenty of time to learn about making a $. I will provide the basics (or at least what I decide is basic needs). All the luxury things they want, either they have to save it from Christmas/Birthday/etc. or they can barter for it. At least this would be the case when they’re younger and can’t work. Once they’re 15, I expect them to get a job if they want stuff that I don’t provide. I also intend to teach them the power of compound interest. The sooner the better. Combined that knowledge, along with the concept of saving for the future, and the power of investing, I personally think that will go much further than teaching them that if they do x, they’ll get $x. In another word, teach them to get their money to work for them instead of them working for their money.
[quote]I’m in the process of explaining no you aren’t getting an iPhone even though some of your classmates have them already.[/quote]This is one of the reason why I live where I live. I could have live in fancier areas, but then I would have to deal with this exact thing. Instead of wanting a BMW/Benz when they’re 15 because their friends have it, they would be happy to get a car when they’re 16 because not everyone of their friends have a car. Same with an iPhone or any other high price luxury items.
