A Wise Child Explains Money
Feb. 29th, 2008 03:35 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
sabrinamariA week and a half ago, I ordered the Financial Peace Jr. Kit, designed to help children and teens learn to manage their money wisely.
http://www.daveramsey.com/shop/Financial_Peace_Jr__P112.cfm?UserID=26060089&jsessionid=3c30d4f4b05c53a64534
It arrived a week ago, and we pulled it out and went over it as a family last weekend.
The kit switches families from the allowance system to the commission system, and puts children in control of earning and distributing their own money within three categories:
1. Save 2. Give 3. Spend
An envelope is provided for each category, along with two dry-erase boards for tracking and planning. It's suggested that parents require kids to save at least 10% and set aside at least 10% for a charity of the child's choice, but otherwise, each child decides what to do with his money.
As a family, we sat down and decided what Trent's chores would be, daily and weekly, and how much he would earn for each one. We also decided what problem behaviors would be fined, and for how much.
Every day this week, Trent got up and picked up his room without being asked. He also cleared the dinner table without being asked, and inquired if he could learn to do the dishes.
Today was his first payday. This week he earned two dollars. He gave one dollar to a school charity for "Crazy Hat Day". His second dollar was paid in the form of four quarters. I watched him take out his "Give, Save and Spend" envelopes and stand in front of them, thinking about what to do.
Finally, he said, "I want to be smart. I'll put two quarters in the Save envelope, one in the Give envelope and one in the Spend envelope." And he did.
I stood there in shock. He had already given away his first dollar---I did not expect him to do anything but spend his second! "Why did you do that?" I asked him. "I want to be a millionaire when I am older," he replied.
If I had known at 20 or 30 what he knows at the age of 7, my life would have been very, very different.
http://www.daveramsey.com/shop/Financial_Peace_Jr__P112.cfm?UserID=26060089&jsessionid=3c30d4f4b05c53a64534
It arrived a week ago, and we pulled it out and went over it as a family last weekend.
The kit switches families from the allowance system to the commission system, and puts children in control of earning and distributing their own money within three categories:
1. Save 2. Give 3. Spend
An envelope is provided for each category, along with two dry-erase boards for tracking and planning. It's suggested that parents require kids to save at least 10% and set aside at least 10% for a charity of the child's choice, but otherwise, each child decides what to do with his money.
As a family, we sat down and decided what Trent's chores would be, daily and weekly, and how much he would earn for each one. We also decided what problem behaviors would be fined, and for how much.
Every day this week, Trent got up and picked up his room without being asked. He also cleared the dinner table without being asked, and inquired if he could learn to do the dishes.
Today was his first payday. This week he earned two dollars. He gave one dollar to a school charity for "Crazy Hat Day". His second dollar was paid in the form of four quarters. I watched him take out his "Give, Save and Spend" envelopes and stand in front of them, thinking about what to do.
Finally, he said, "I want to be smart. I'll put two quarters in the Save envelope, one in the Give envelope and one in the Spend envelope." And he did.
I stood there in shock. He had already given away his first dollar---I did not expect him to do anything but spend his second! "Why did you do that?" I asked him. "I want to be a millionaire when I am older," he replied.
If I had known at 20 or 30 what he knows at the age of 7, my life would have been very, very different.
