Comments on: Do Your Kids Know What Money Looks Like?

By: Educating Children on The Importance of Credit Scores

Educating Children on The Importance of Credit Scores — Thu, 27 Nov 2008 11:30:32 +0000

[...] need to teach your children early about responsible credit card use, debt and late payments and fines. Check their balances [...]

By: AJ McCreary

AJ McCreary — Mon, 20 Oct 2008 18:58:37 +0000

I think talking to your kids about money is really important. My little guy is two and he is actively involved in saving his money! Whenever he finds money or gets a quarter we put it in the piggy bank. He also goes with me to deposite money he recieves as a gift in his bank account.

I also let him pay for things with my cash. I try and only use cash becasue it makes me a smarter shopper (I pay more attention to where Im spending my money) but I like the idea that it teaches kids to associate spending with actual money! As well as the gal taht had her daughetr do the math so she could keep the change! LOve it!

Going the next step about money I have been thinking of ways to change our Christmas habits from spending to tradition and giving. Though my son is still small its something that will become an issue in the next few years. I wrote a post about frugal holiday spending at http://current.pic.tv/. To me the biggest thing is talking to your kids about money and how it relates to the holidays!

Again thanks for all the great ideas!

By: AnnieJ

AnnieJ — Mon, 20 Oct 2008 03:39:08 +0000

Some of the suggestions in the comments are really great for young kids, but sooner or later, the most important lesson we all have to learn is that all money, whether cash, a bank account, a credit account, an investment, etc., is a symbol of stored-up (or in the case of credit, future) productivity.

About three months ago, my 14-year old teenager started working for me a minimum of 3 hours every weekend at a fixed wage. He can work more if he wants to, which he usually doesn’t. He clocks (signs) in and out, is required to report to work punctually and ready to work (shoes on, fed, appropriate clothes for the task, etc.). Half of his wage goes to help pay for his private school tuition (of course, it only pays about 5% of the cost) and the rest he can use as he chooses. He’s done yard clean-up, scraping, sanding, priming and painting outdoor trim work, gutter cleaning, and other household maintenance tasks.

The effect has been amazing. All of the sudden, he comes home from spending the afternoon at the mall with his friends with pride that he DIDN’T buy anything! He’s learning the importance of demostrating a positive attitude as an employee, checking his own work and accepting criticism from others, punctuality, focus on the task, pride in his work, as well as how hard it can be to earn a buck.

He now realizes that when he spends $18 on a T-shirt, that represents three hours of his time spent working.

He’s also learned a lot about using gardening tools, the difference between weeds and landscape plants, how to prep for painting so that paint doesn’t peel, why caulking is important, the importance of having the right tools for the job and taking care of them, and much more.

And to my surprise, he’s also taking more responsibility for his homework and doing better in school.

Honestly, I wish I had started this about five years ago; by now I would have had an all-around handyman who could be earning $25+ an hour as soon as he’s of legal work age, and he could be learning about business accounting, managing employees and payroll taxes by now instead of how to clean paint brushes!

By: Roundup and Link Love - Restful October Weekend Edition | The Wisdom Journal

Sat, 18 Oct 2008 20:12:52 +0000

[...] I’m serious) @ Lazy Man and Money How to survive and thrive in a recession @ The Dough Roller Do your kids [even] know what money looks like? @ Being Frugal Warren Buffet is buying American stocks right now and you should too @ Consumerism [...]

By: Weekly Roundup - A Mouse in the House Edition | Frugal Dad

Weekly Roundup - A Mouse in the House Edition | Frugal Dad — Sat, 18 Oct 2008 11:01:34 +0000

[...] Do Your Kids Know What Money Looks Like? [...]

By: mb

mb — Fri, 17 Oct 2008 04:18:19 +0000

Mom sat me down at the age of six and explained the concept of bank accounts, checks, and credit cards. I also had some teachers who gave less detailed lessons. glad i got those conversations.

By: Lorie

Lorie — Thu, 16 Oct 2008 23:56:15 +0000

We have no credit cards & only use our debit cards to pay for gas & emergencies. My son, at 3yo, does know what money looks like. He doesn’t yet understand what each coin or dollar represents, but we’ll get there. He sees us using cash to pay for groceries & the few other things we purchase. When I was a kid I used to always count my grandfather’s change. I guess it helped me to learn how to keep more of it in my pocket. Plus, my grandfather was quite frugal. I plan to pass this on to my children.

By: Michelle

Michelle — Thu, 16 Oct 2008 17:54:31 +0000

I only have a check card and I use it very little because I always have cash on hand. In my line of work (bartending) my paychecks make up 10% of my income so I only use my account for bill paying. Her father of course is a credit card junkie so once when she wanted something out shopping and I said I didn’t have enough money, she said “Just use your card”

I explained that my money just doesn’t appear out of nowhere on a card. My card actually has cash linked to it and that cash is to be used for bills alone. “Don’t spend money if you don’t have it”

By: Lynnae

Lynnae — Thu, 16 Oct 2008 17:27:27 +0000

@Kelly – I always told my mom to write a check, when she said she didn’t have any money. LOL

Oooh. And the ATM. That’s a good point, @Amy. I certainly don’t want my kids to think I can just go to a machine that spits out all the money I’ll need. LOL

By: Amy

Amy — Thu, 16 Oct 2008 17:06:58 +0000

My girls are 4, 2, and 6 weeks. The two older ones love to play with their money (mainly change) from their piggy banks. They choose money from their banks to give at church. They put the money in the envelope and give it themselves. When they receive money for their birthdays, we discuss items they might want to buy with it. Then, we go to the store for them to pick out something. The item(s) must cost the amount of money they have (I take care of tax!), and then they pay the cashier themselves.

The only thing I have to watch when paying with cash is to go to the ATM when they are not with me!