Tayla Posted March 17, 2011 Share Posted March 17, 2011 So today I am watching a show about "teaching" kids about money. Starting at the earliest age possible. I sat and pondered the pros and cons of this concept and sit on the fence. One thing is that Kids need not be forced to endure the "adult" responsibilities at such a young age. Telling them, "Too Bad, your allowance wont cover your tap lessons" is rather odd at best. At some point yes, kids do deserve guidance in how finances enter into their life. On the other hand, they are kids for a reason. Some things are better left for the pre teen years where they can make accurate decisions and be held accountable. A six year old is not going to deal well with stress when they have to pay for their own lunch because mommy and daddy are trying to teach them about money.....So what do you folks think is a good age to introduce them to finance and budgeting? I say around ten and above.... Link to post Share on other sites
cmh2002 Posted March 17, 2011 Share Posted March 17, 2011 My oldest 2 have been getting an allowance for a year now and they are almost 9 and almost 7. They have never been told they can't do an activity or that they have to buy their own lunches. They only get $5 a week and they have chores to do to earn that money, if they don't do the chores they don't get an allowance. My kids have learned to pay more attention to price of things since receiving allowance. I have made my kids pay for some things like I made my daughter pay for half of her ds that she got last yr as she got $60 for her bda and the ds was 130..if they want a special treat they have to pay for it most of the time. I think around 14 I started my first job and I chose to pay for most of my clothes because of the brands I wanted..my parents offered to buy certain clothes if I didn't like it then I saved my money and bought it myself. Like for instance I bought myself a pair of air jordans back in the day when I thought they were cool $150 cool lol cause my parents wouldn't spend that kind of money on them. I have told the older 2 if they ask for something and we can't afford it that its not in the budget and it will have to wait.. They are both good at saving money now. Within the next yr we will start making them save half of their allowance but not just yet as they are still fairly young, but want them to understand things do cost money and you have to work for things...To many parents I think try to get their kids to be mini adults to fast an don't let them enjoy being a kid while its okay to be silly and have fun and make mistakes so you can learn. Link to post Share on other sites
Author Tayla Posted March 18, 2011 Author Share Posted March 18, 2011 Thanks CM for your view point and how you manage to monitor the childrens needs verses their wants. According to the show I watched , parents are to set the stage (example). SO if the parents have to save for that nice dress or pair of shoes then so too should the kids. ITs weird the way they want the kids to have to "earn" the school shoes or jeans they need. Yes I get it that different folks have different taste in clothing or "BRAND/LABELS". BUt I cannot fathom telling my 6 year old grandson that he cannot have new sneakers until he saves up for them....His feet grow! No six year old should have to pay for his own clothing simply because the parents are trying to teach them to "budget" for these things....Maybe that is why I am perplexed on this theory of budget verses letting kids be kids.... Link to post Share on other sites
bentnotbroken Posted March 18, 2011 Share Posted March 18, 2011 I started when they learned to count. I got some play money and used the pennies. When they did something I asked them to do they got a penny that they put in a jar. At the end of the week we would count the pennies together. I kept a box of goodies(coloring books, little cars, rice krispy snacks) and each one had a number on it. Whatever they chose, they had to count out that number of pennies to me. It helped them learn to count, learn that money was the way they could buy what they wanted, and that if there was something they wanted but didn't have enough pennies, they would have to wait. It took some tears, some patience, but they caught on pretty quickly. We started with really small numbers then moved up when they got the hang of it. Around 6 we started with real pennies. Link to post Share on other sites
Author Tayla Posted March 18, 2011 Author Share Posted March 18, 2011 Bent, That is an awesome idea!!!! If I may, I would love to share that idea with my son as he is raising a youngster who needs to learn in this very way! He would be tickled to be able to pick out a small treat each week and still learn in the process! WOW it could be used in many other areas too, learning his vowels, his states, ohh the list are endless, and it doesnt put pressure on them so much ...Thanks for that idea! Link to post Share on other sites
threebyfate Posted March 18, 2011 Share Posted March 18, 2011 At 7 years old, my oldest nephew understood the word "bankrupt" and explained it to me using his own words in reference to an indoor playground that we were going to, which ended up being closed due to bankruptcy. Sometimes adults don't give children enough credit for their ability to comprehend finance. As long as you grind it down to its simplest terms using analogies that they can relate to, hence grasp, they can understand a lot! Link to post Share on other sites
somedude81 Posted March 18, 2011 Share Posted March 18, 2011 I always understood that giving a child an allowance was so that they can buy the stuff they want, when you weren't going to buy it for them. Clothes, tap lessons, meals etc. shouldn't come from a child's allowance. If Billy wants a new game and it's not anywhere close to his birthday or Christmas, he should use his allowance money to pay for it. Of course cmh2002's parents bought him new shoes when he needed them, but they weren't going to buy him the really expensive one he wants. He can buy that himself. Link to post Share on other sites
Eve Posted March 18, 2011 Share Posted March 18, 2011 I cant say that I really can follow how we have raised our children to understand finances. When they were little they had piggy banks to save. They liked this but really that was all about them wanting to buy sweets with the money, nothing else really. As they grew we never really gave them much money. They could have a magazine subscription or something but I never gave them money for chores or anything as I did not feel this matches reality; you don't get paid for cleaning your own mess up. However, I have tied receiving an allowance with a clean room with our last teen because she was SO messy! She can have £20 per week as long as her room is very tidy by Sunday at 12pm and this must be maintained at a reasonable rate throughout the week. Clothing and all the other stuff is dealt with separately. Usually she can have a treat/shopping trip when I get paid every month. No, can't say we have been really strict with money, even when we didn't have very much. With our kids they didn't really understand money until they stated working methinks. It is non negotiable in our household that they each have to have a job after finishing their statutory education at 16. They understand that they each must go to College but there is no pressure to go onto University if the job works out. Claiming benefits of any sort is not an option. Having their own money that has been worked for really changed each of them. My youngest is approaching this stage and is really looking forward to working. I still remember the shock on my eldest daughters face when she bought her own Mcdonalds for the first time - she was like, 'How much?' So, I don't know how we have directly influenced them really but they seem to respect money and understand they must earn their own. TBH, we still pay for things like their lunches. I don't even know why. Take care, Eve x Link to post Share on other sites
Linda9999 Posted March 18, 2011 Share Posted March 18, 2011 My kids have never had an 'allowance'. They have each had their own bank account since they were small, and every month I would put $20 into it and at Christmas we would go to the bank and get the cash and they would do their Christmas shopping. We would read their bank statements each month and talk about the money. Once they got jobs that stopped. They've always had certain chores that were their responsibility, not tied to allowance or anything, plus they've had the option of earning a bit of cash by doing major chores such as cleaning out the fridge, washing walls, that type of thing. When I was a single mom we had no disposable income so they got used to having very little. When that changed they realized why, and that they could expect more since we had more. They've always known the value of money, and like typical kids they want more than they have, but they haven't been unreasonable about it. Sometimes I wonder about my oldest - he's 21, lives at home, and is constantly late with his rent. He got sent to collections for his cell bill when he lost his job. He seems to have the attitude that if he ignores it, it'll go away. But he has that attitude about many others things too, so I don't think his lack of financial savvy is a lack of understanding, it's a lack of caring about the consequences. Since he got his drivers license, he has to pay us his share of the insurance by the first of every month or he can't drive my vehicle. It took a couple of times of me refusing to let him use it before it sunk in that I meant it, so now he's not late. He is late with his rent because he knows I am not going to kick him out. My other son is better with money, he doesn't ignore things, he frets about them. He isn't working right now and hates not having money, so he finds other things he can do to earn it. He's managed to keep his cell bill current for the last couple of months that way, but he has NO other money. Hopefully he gets a job soon! When he was working, he spent everything he made, but at least he didn't spend more than he had, like his brother does. My daughter is by far the best financially. She's 17, she's been homeschooled for the last 4 years, has a job and is saving $100 every pay towards moving out. Originally it was for a Disney cruise, but she and her BF have decided they want to try it out on their own more. They have a budget worked out and everything, she's buying household items a few at a time so she isn't hit with it all at once. She plans exactly what she's going to do with each paycheque - savings, paying us for the kitten she insisted she wanted to get (she had to pay for his neuter, and she pays us every month for his food, litter etc), and buying things for herself. Maybe the homeschooling was the difference somehow. Link to post Share on other sites
ReturnToSender Posted March 18, 2011 Share Posted March 18, 2011 Theres this guy on youtube who talks quite a bit about his fam and upbringing...they came from the ghetto and had very little money. Both his little bit of allowance, and whenever he got money as a gift, his dad would make him give him 80% of it saying it was for "expenses"...and when he was old enough to get a job, his dad took 80% of his paycheck too. He couldnt stand it and felt it was totally unfair, but its not like hed stop working cause he still needed that 20% to buy stuff or take a girl out for soda or something. When he graduated high school, his dad gave him a check, and it was all the money that he had taken plus interest...he had put it into a bank account for that purpose. With that money, he was able to afford to get himself apt, put a downpayment on a car, and still have money in savings. He said that taught him a valuable lesson..that no matter how much he thinks he needs his money right now, he really doesnt, and still puts a chunk percentage of his money into savings. Plus he goes back to his old neighborhood and gives away like 50 christmas cards with $100 bills in it, and he buys a load of groceries to cook meals that he gives to the homeless. He also did a tour of his place and his car...pretty nice lol And he said, not bad for a guy who came from the ghetto...true enough. I was so bent on doing that with kiddo, except I would tell her I was putting it into savings for her instead of her thinking I was just tking her money for "expenses" But havnt put that to practice yet. Link to post Share on other sites
bentnotbroken Posted March 18, 2011 Share Posted March 18, 2011 Bent, That is an awesome idea!!!! If I may, I would love to share that idea with my son as he is raising a youngster who needs to learn in this very way! He would be tickled to be able to pick out a small treat each week and still learn in the process! WOW it could be used in many other areas too, learning his vowels, his states, ohh the list are endless, and it doesnt put pressure on them so much ...Thanks for that idea! Have at it. I got the idea from a good friend who children were older than mine. Pass it on. Link to post Share on other sites
Author Tayla Posted March 18, 2011 Author Share Posted March 18, 2011 Thanks Bent! Appreciate your kindness in this tip! Wow REturntoSender, Interesting story with a good ending. Unfortunate as I was a foster teen and ignorant as I was one step from homeless so when they told me I had to fork over my paycheck for room and board I simply did....Never got the money back . Did learn that some adults are all about the money and not about being a positive influence on a teen.... I'm pleased to hear that some parents also do not reward for simple tasks of cleaning up after themselves and contributing to family chores. Its part of the family system to contribute without money being the objective. Like I said the TV show really emphasized the younger the better and yes they even said , get them to pay for school lunches and some extracurricular (piano lessons?), thats why I started this post. Glad I did because I gained some great feedback from you posters! Thanks!! Link to post Share on other sites
Eve Posted March 20, 2011 Share Posted March 20, 2011 Theres this guy on youtube who talks quite a bit about his fam and upbringing...they came from the ghetto and had very little money. Both his little bit of allowance, and whenever he got money as a gift, his dad would make him give him 80% of it saying it was for "expenses"...and when he was old enough to get a job, his dad took 80% of his paycheck too. He couldnt stand it and felt it was totally unfair, but its not like hed stop working cause he still needed that 20% to buy stuff or take a girl out for soda or something. When he graduated high school, his dad gave him a check, and it was all the money that he had taken plus interest...he had put it into a bank account for that purpose. With that money, he was able to afford to get himself apt, put a downpayment on a car, and still have money in savings. He said that taught him a valuable lesson..that no matter how much he thinks he needs his money right now, he really doesnt, and still puts a chunk percentage of his money into savings. Plus he goes back to his old neighborhood and gives away like 50 christmas cards with $100 bills in it, and he buys a load of groceries to cook meals that he gives to the homeless. He also did a tour of his place and his car...pretty nice lol And he said, not bad for a guy who came from the ghetto...true enough. I was so bent on doing that with kiddo, except I would tell her I was putting it into savings for her instead of her thinking I was just tking her money for "expenses" But havnt put that to practice yet. My daughter LOVED this! If you have the youtube link that would be much appreciated but I will have a look also. Take care, Eve x Link to post Share on other sites
ReturnToSender Posted March 20, 2011 Share Posted March 20, 2011 My daughter LOVED this! If you have the youtube link that would be much appreciated but I will have a look also. Take care, Eve x Im so sad..Im sure I favorited the vid I was telling you about where he talks about his dad but I dont see it in my list, and I went through his vids and cant find that one. I wonder if it was too personal and he deleted it or something cause he went into a lot of detail about his life growing up... Make a Difference Monday Motivation...some of his story and he gives a tour of his old hood and tells some stories of where he came from and where hes at now: Heres his christmas giveaway video....so cool seeing peoples reactions and asking him if the money is real lol Its heartwarming: Hes got a crazy sense of humour and can be kinda crude, but all this stuff he does for his community and how selfless he is, I got a mini crush on this guy for a minute there, even though he never puts his face in his vids and dont know what he looks like LoL Link to post Share on other sites
rjkaaronrjk Posted March 26, 2011 Share Posted March 26, 2011 How much money should kids get? This depends on your own family budget restrictions and personal situation,One suggestion might be $1 for every year of age, So a five year old would get five dollars, and a ten year old would get ten dollars a week, Or start with a certain dollar amount, and increase it by $1 each year, Though, we would suggest giving an amount that is comfortable with you, based on your own child's spending habits, and your budget, The main point is to give a certain amount on a regular basis. Link to post Share on other sites
Seaofclouds Posted March 31, 2011 Share Posted March 31, 2011 We have a 9-year-old. He gets $18 a month for an allowance as long as he does his chores all month. If we have to do his chores for him (because he refuses to do them), his allowance gets cut some. We chose $18 because we figured twice his age each month was plenty for now. When he gets his allowance each month, he has to put half of it into his savings (which is a savings for when he gets older, kind of like a kiddie retirement I guess you could call it) and the other half can go into his wallet for him to spend on what he wants (with some restrictions). He's already learned quite a bit about saving up for some things he really wants (particularly new video games and legos). We still buy all of his needs (clothes, lunch money, etc.) and pay for his activities (baseball, soccer, etc.). I couldn't imagine telling him he had to use his own money for his clothes or lunches at this point. Link to post Share on other sites
riskfatlate Posted April 6, 2011 Share Posted April 6, 2011 Giving your kids an allowance is the best money-management tool you can use with your children,When it's their money on the line, children make more-informed purchasing decisions,Teach your child responsibility and money management by assigning age-appropriate chores and providing a regular allowance An allowance a certain amount of money given on a regular basis is a great way to get kids to learn about the value of money while also learning basic money management skills,Its also a great way to teach responsibility and discipline. Link to post Share on other sites
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