Scardycat said…
“Shouldn’t there be a period of childhood that isn’t about cash? A time of innocent exploration free from the pressures of the marketplace, free from the call of the dollar, where they can learn what it is to be human.”
Why? They ask for toys and treats all the time. Money is part of life. I would rather teach them good principles so they have a clue when they are on their own. Today my 5 yr old wanted to spend $5.00 on a lego kit and he did using his savings. He handed over the cash and loved the independence.
I have a some cousins that are loaded and I recently asked them how they taught the principle of money to their kids because the kids are fantastic. First note that they pay for their clothes, school necessities etc. They also do a one hour Saturday chore. This is NOT tied to allowance. They are expected to help around the house.
They give each kid $10 a month allowance age 5-10 and $20 allowance a month from 10-18. They give them a check register and show them how to write in the deposit. If they want to go to the movies, buy a guitar,etc…They have to save up the money in their checking account. Birthday money from grandparents or other misc $$$ is also deposited. They help them learn how to withdraw from their account and give 10% to charity. They said they got sick of the question, “Can I have $20.00 mom to go to….?”
The child has the option to put the money in a savings account to use for their college or wedding. If they choose to transfer money into their long term savings account, the parents double their money. The kids get a statement each month showing their balance. They can’t touch this until they are 18.
This teaches kids how to make $$$ off savings, delayed gratification, and how to balance a checkbook from a young age. I think these types of lessons will take a kid much further in life than from earning $100 for an A.
I thought it was brilliant and I was surprised at how little money they gave them each month.