Kids & Money management/allowances

[Saralynn]

Dh and I are looking for a good way to teach our kids money management skills. Neither of us regularly received an allowance. Our kids are 9, 6 & 3 *turning 7 & 4 soon.*

We've talked about according to age, according to job, a bit of both. I'm interested in the Dave Ramsey one, The Doorpost one or anything you've done that's worked/working.

Sara

[thebeckery]

have you looked into Mary Hunt and Debt Proof Living...

that is what we follow (loosely!:))!

[Saralynn]

YEah, I have her book and read it. I have it in my "giveaway" pile. :giggle: Maybe I should go review it if it has a section for kids?

Sara

[thebeckery]

YEah, I have her book and read it. I have it in my "giveaway" pile. :giggle: Maybe I should go review it if it has a section for kids?

Sara

She has a book about Debt Proofing Your Kids. We don't really do it yet b/c our kiddos are younger, but we follow much of her debt proof living stuff ourselves. It has been a BIG blessing for us!

[Saralynn]

We read it together several years ago but didn't implement it. I've also read the Larry Burkett stuff and done the workbook. I guess you could say we're slow learners. I know I am. I take in things over time and eventually it sinks in and I get it. It's easy to read, nod your head and then keep doing what you've been doing. :)

I think I'll see if I can request a few from the library to see what we're likely to do. It needs to be low maintance and something I can tweak for us. I will regardless. :) I was thinking of Tiffers peg system but still am not sure I would use it if she hasn't!

Sara

[Aurora]

Sara, I just noticed that Dave Ramsey has a site for kids & also has a sample children's book online if you want to check it out.

http://kids.daveramsey.com/?event=ReadBook

[Saralynn]

Sara, I just noticed that Dave Ramsey has a site for kids & also has a sample children's book online if you want to check it out.

http://kids.daveramsey.com/?event=ReadBook

Checking it out. I knew about the book/system but somehow missed the website for them. Thanks

[Saralynn]

I just found out I can't order from the Dave Ramsey site. They don't accept paypal for their online store. So I'll have to order through a different site if I decide to get them. That's too bad. Oh well.

Sara

[Aurora]

That's a bummer. =/ I had been hoping to find Financial Peace Jr. at the library since we don't have the cash to buy it right now, but they don't have it... not even through inter-library loan. :( If you do end up buying it, could you let me know how you like it, please?

[Saralynn]

That's a bummer. =/ I had been hoping to find Financial Peace Jr. at the library since we don't have the cash to buy it right now, but they don't have it... not even through inter-library loan. :( If you do end up buying it, could you let me know how you like it, please?

Yes, for sure. :) I requested it through inter-library loan, but somehow I doubt they'll have it. LOL

Sara

[Hadley]

You can just make your own system...make them tithe, save for short term and long term, and have some for spending...

you could make a list of chores that they can do and how much $$ it would be worth, or you could give them a base amount and extra chores gets extra $ and bad attitudes or not doing jobs means less money.

help them make their own envelopes may be

[Saralynn]

You can just make your own system...make them tithe, save for short term and long term, and have some for spending...

you could make a list of chores that they can do and how much $$ it would be worth, or you could give them a base amount and extra chores gets extra $ and bad attitudes or not doing jobs means less money.

help them make their own envelopes may be

That's kind of what I'm thinking. If I can get the Financial Peace Jr. from the library I'll likely make my own, laminate the sheet and let them decorate 3 envelopes. Actually, I have 3 ice cream containers that I saved for the purpose of making a 3 sectioned bank. Save, Give, Spend. :) As for the coin purse he has, the dollar store has coin purses. I did find someone who listed the pack on homeschool classifieds for $13. I'd buy it for that. :)

Sara

[CentralIllinoisMom]

We started this when my girls were 2 & 4. I got three of the little Pringles cans for each of them & covered each with paper. Then I wrote 'SHARE' on one, 'SAVE' on one, and 'SPEND' on one. Then, we decorated them. Every week, we give each girl $3. BUT, we talk with each girl seperately when we do it. We talk about where our blessings come from & ask "WhenEVER you receive the blessing of money, what is the first thing you do?" I'll tell ya - it didn't take long before even the 2 year old could answer "SHARE!" We talk about what that means, ways we can share, why/how we thank God by blessing others/giving $$ to His work, etc. Then, they are asked - after you share, then you - they answer 'SAVE.' Then, after you have shared some, & saved some, then & only then can you - they answer "SPEND." So $1 goes in each can for each of them.

Yeah, $3 a week might seem like much, but....

We would give them $ every week for Sunday School offering anyway - why not make them part of the process? That $1 that goes in that can every week, they see come out & go straight into their offering envelope. They call it "Thank You Jesus Money!" If they have extra in the share can, they can choose - put it in the offering, buy food for the food bank, put it in collection cans for charities, etc.

The save can - We're supposed to be saving $$ for them, right? So again - why not make them learn about it? When the save cans get a little full, we take the $$ out, and all go in together to the bank to put it in their savings accounts. They are learning how to fill out deposit slips, learning about interest, and think it's really cool to see how much more $$ is in the account than last time. Some of it is set aside for the big stuff - college, wedding, etc. But, any extra that they add (gift $, garage sale $, lemonade stands, etc.), they can save for big purchases of their own. Oldest dd is saving for a really nice set of 'big girl furniture.'

Spend - Oh how I love that can!!!! Whenever we go on vacations, to fairs, anywhere - the spend $ goes in envelopes with their names on them. DH & I would be shoveling out $ anyway for stuff for them...this makes it easier on us financially, since their mad money is already set aside! Then, they get to make the tough decisions. I can not even begin to tell you how glorious it was last year... We went to the Indy Children's Museum one day, and the zoo the next. My then 6 year old wanted to spend $ on the first day. But, she knew she didn't have enough to get something really big on each day. She worried that she would find something she liked better on day 2. So, she thought it over & decided to not spend a dime on day one! We couldn't believe it!! :dance2: She bought something on day 2 and was very proud of herself - at 6 years old!! Heck, I'm gonna be 40 this year & I still struggle with that kind of self-control! :giggle:

This whole idea is something we adapted from...go figure...a $ management workshop I went to at H@H several years ago!

We tend to agree with the philosophy that allowance and chores shouldn't be tied together - just our personal preference. They do chores because we all have to work together to make this family run smoothly, have time to do the fun stuff we want, etc. Yes, they can earn extra $$ for doing something really major that is above & beyond. But, allowance $$ is given no matter what. We just feel it is too important of a teaching tool. My DH and I were big financial idiots when we got together & it created a world of trouble for us. We want our girls to have this stuff down & have a fightin' chance when they head out there on their own! It is amazing to see just how much they really can comprehend if we are consistent & really take the time to teach this stuff.

Hope this helps!
Tracy

[Saralynn]

Tracy, Yes, it does help. Your can idea is what got me started on the icecream container. With 3 girls and a little house I just wanted something a little bit less. So the icecream idea was born. They are plastic containers with plastic lids.

I was thinking that I do want them to have some $ just because, but I like them having the opportunity to earn $$ also. There are things I regularly expect them to do. That won't change. But there are things I need help with that I wouldn't mind paying minimal amounts for in exchange for cheerful, careful work.

They are saving up for Disney, and any large purchases they may want to make. At this point we give an amount to each at Christmas to purchase for their sisters. I was thinking I'd rather have them earn that. It means more. Also, for gifts for their friends, souvenirs like you mentioned, snacks etc I would like them to pay for so they do learn money management. Right now money still feels like a cool toy to them. :dunno:

Like you, I want my kids to learn to handle money earlier and better than I do. :)

Sara

[Aurora]

Those are wonderful ideas! Thanks so much for sharing!