In my very first post, I described the difference between Brian and me as far as attitude towards money. Our kids are an even divide as well. Goose is just like me. He gets a nickel and he's scouring stores with anything for a nickel or a nickel candy machine, whatever. Some would say money burns a hole in his pocket; it's more of an incineration of his pocket. He not only can't save it, he can't seem to keep from losing it.
Chicka-Doodle, on the other hand, is just like Brian. Her mind thinks in money. She knows at any given time exactly what her savings balance is at the bank. She knows exactly where she stashed the "pretty" $5 bill and exactly where she keeps her "pocket change". She blows my mind.
We have decided to change their allowance from "earn it" to "learn it". We used to pay them according to the completeness of chores. That was all great, but it did nothing to teach them the beautiful balance of save & spend, nor did it teach them any method for accounting.
Ahh...in comes the ENVELOPE system! (My personal favorite)
We sat with each of our kids and explained breaking up income into 4 main categories:
Chicka-Doodle, on the other hand, is just like Brian. Her mind thinks in money. She knows at any given time exactly what her savings balance is at the bank. She knows exactly where she stashed the "pretty" $5 bill and exactly where she keeps her "pocket change". She blows my mind.
We have decided to change their allowance from "earn it" to "learn it". We used to pay them according to the completeness of chores. That was all great, but it did nothing to teach them the beautiful balance of save & spend, nor did it teach them any method for accounting.
Ahh...in comes the ENVELOPE system! (My personal favorite)
We sat with each of our kids and explained breaking up income into 4 main categories:
- 10% Tithe
- 15% on gifts for others (or supplies to make gifts for others)
- 25% saving for a specific item (Chicka-Doodle wants an EasyBake Oven, Goose wants to save for supplies to make Grass Dancer regalia for Tribe)
- 50% spending. To include "fun" spending as well as necessary spending (they both are now responsible for their own magazine subscriptions, school lunch (if they choose to have hot lunch vs. packed lunch), and for Goose, Boy Scout Dues each year).
We explained how to determine how to save monthly for something that requires a lump-sum payment (magazine subscriptions) and are in the process of teaching how to prioritize at "crunch" time.
This has been a learning experience for each of us. I'm feeling ashamed of myself for not getting to these lessons sooner (at least for Goose), but am grateful we still have a few years before he's out on his own, where we can implement these ideas.
This has been a struggle for Goose. He really has to think about it and then follow through - which is tough for him. He's doing great though, and we're encouraging his progress, as slow at it seems!
Chicka-Doodle has grasped the concept quite easily. With her, our goal is to loosen the grip she has on her money so she doesn't become a miser. There is a perfect balance, I believe it in my soul...and my checkbook! I've learned I just have to budget giving freely! =)
I am so grateful for the path God planned for me to take this walk with money. He's such a wonderful creator and provider!
This has been a learning experience for each of us. I'm feeling ashamed of myself for not getting to these lessons sooner (at least for Goose), but am grateful we still have a few years before he's out on his own, where we can implement these ideas.
This has been a struggle for Goose. He really has to think about it and then follow through - which is tough for him. He's doing great though, and we're encouraging his progress, as slow at it seems!
Chicka-Doodle has grasped the concept quite easily. With her, our goal is to loosen the grip she has on her money so she doesn't become a miser. There is a perfect balance, I believe it in my soul...and my checkbook! I've learned I just have to budget giving freely! =)
I am so grateful for the path God planned for me to take this walk with money. He's such a wonderful creator and provider!
3 comments:
This is such an awesome idea to teach children the value of saving!!
Hey :) I absolutely LOVE being in the kitchen. It's the laundry room that escapes me. For small appliances I love: George Foreman 8-in-1 toaster oven and my Magic Bullet. I can't live without those. I also use my toaster a lot but my microwave sits as a kitchen timer more than anything else. Honestly though, we have Cutco knives from back when Jason sold them and I LOVE my knives. I think they cut my kitchen labor time in half!
Tif,
What a wonderful idea. It's amazing how much kids can understand about their money. My older daughter is "crunching numbers" to find off campus housing that doesn't exceed our budget (I'm so proud of her). She is running into problems as her roommates are worried, because "Mom and Dad will just pay it". We also talk openly about our finances with our children..they ae learning along with us. In fact, my son watches Suze Orman with me every Saturday night (he's 11), and he really gets it! This can only help them.
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