How did you teach your children about money...ideas please.

[Peter 14.7]

Dear All

Having a six year old girl we have a few ways of teaching her responsibility with money, how to save, delayed gratification, efforts equals rewards and lack of efforts mean no rewards, etc....

What did you do or what are you doing to teach your children?

Also what did NOT work and why?

Thanks Peter 14.7

 

[Jamie M]

It's a really good question and I'm interested to see the responses.

My wife and I fostered a 6 year old girl recently and we've just started giving her pocket money - which she gets for helping out with the Saturday morning "jobs."

I've explained the concept of savings - and how after a certain amount of time she could buy something better than a $2 slushy from the school canteen. We looked through a toys r us catalogue a month ago and chose a couple of things that she really likes and is "saving" for.

Cheers

Jamie

 

[monty python]

Our kids are 11 and 9, they get a couple of dollars pocket money each week, and a bit more if they do chores.
If we are out and they want to buy a toy, I always let them know how much it is, can we find something better for less, what else could you buy for that much money, do they really want it, the money will come from their piggy bank and so take longer to save up for the more important goals (eg one of my son's friends is saving for an iPad, and my son recently reached his goal of buying the latest DS, including birthday money).
We buy all their clothes and entertainment. When they each start high school I would like to give them an allowance to cover these things, however I might put it off for a bit so I still have some say in their clothes, lol! We don't go in for designer stuff, and I find my daughter is very creative and stylish with her clothes.
They do a number of activities which all cost money, they know that each is a 12-month or season commitment.
They come grocery shopping with me and we talk about which items are the best value for money.
They know that we have bought a few "rental houses", and people pay us rent to live in them. They have been to an auction with us (we were successful, thank goodness!). They don't enjoy house-hunting (not many people do after the first couple of weeks!)
I am conscious that we have the ability to spoil them, but try hard not to. They have heard the word "no" on regular occasions.
We live in a nice but not elite suburb, very multicultural, I want them to be comfortable with people from different backgrounds.
What hasn't worked? We used to say "yes" to buying little things for them when we were out, they came to expect it and it became painful. Cash for chores - its a bit haphazard! We need a plan for allowance when they are teenagers.
I look forward to learning from others here, hopefully there's loads of great ideas from parents who've been there, done that!

 

[Peter 14.7]

Good stuff keep them coming, Peter

 

[HotRod]

We played Cashflow for Kids when they were about 9/11.

Did banking through their schools at CBA (Dollarmites???).

Pocket money for chores and then saving it.

We were asked to see the teacher one day after school. We were wondering what he had done to whom. Turns out they were doing an in class project supposedly to learn about money. They were given class money to spend on things in class for good work etc. Kids were buying toy cars, time on the computer, free time etc. My eldest, bless him, asked the teacher that he wanted to save his money to buy a house and make more from that to buy more.

Needless to say, the teacher was very confused.

Paradigm shift that day for the teacher.

 

[weg]

First and foremost they will model themselves off parents and those they surround themselves with to a large extent - for good and bad.

If parents want all the latest now, the child will most likely grow up to be the same and demand these things.

If the child hears the parents discuss things like what items provide value for money, or whether they really need to purchase something, or the importance of having some savings (as opposed to seeing them live week to week), they will learn a similar mindset in time.

If investing is a big part of equation, then there is a strong likelihood the child will invest at some stage.

I think however parents often send out double messages without realising, like allowing the child to have what they want for no good reason (didn't have to save or consider why the should have it), and justify it because they can afford it/all their friend have it or they just don't like to see their child go without.

What they see around them can make a difference too. Are many of the people around them successful or always broke? That can plant seeds of what the norm is too, which sometimes can undo a little of the work you do, or it can make them strive to one day be like the majority of successful people/role models they are exposed to. Again good and bad.

I think being very mindful of those things, as well as giving the right financial guidance gets them on the right track and ultimately doing well.

Btw, I have never paid my children to do chores. The attitude is, if you live somewhere you (parents included) contribute to that household.

 

[shuggy]

I locked my kid in a room with a marshmallow and said you can eat it now or if you wait 20mins I will give you 2. Pass. When this experiment was first done in 1972 the researchers studied developmental progress of each participant child into adolescence and reported the kids who were able to delay gratification were psychologically better adjusted, more dependable and scored significantly greater grades in secondary school.

 

[weg]

I locked my kid in a room with a marshmallow and said you can eat it now or if you wait 20mins I will give you 2. Pass. When this experiment was first done in 1972 the researchers studied developmental progress of each participant child into adolescence and reported the kids who were able to delay gratification were psychologically better adjusted, more dependable and scored significantly greater grades in secondary school.

The diagnostic test for ADHD - before they knew what it was .

Just kidding.

 

[jim1964]

I would consider we have this down pat.Our kids are 21,20,18,13,11,9 & 7(had to count then to make sure no one was missed),yes,the modern family.All the kids get money for doing different jobs or tasks,and this works well.We encourage saving for the bigger items,this works especially well with the older kids.

 

[Peter 14.7]

I locked my kid in a room with a marshmallow and said you can eat it now or if you wait 20mins I will give you 2. Pass. When this experiment was first done in 1972 the researchers studied developmental progress of each participant child into adolescence and reported the kids who were able to delay gratification were psychologically better adjusted, more dependable and scored significantly greater grades in secondary school.

Really, you did this. I just need to confirm before I apply to dear daughter, Peter

 

[shuggy]

Really, you did this. I just need to confirm before I apply to dear daughter, Peter

I shouldn't have said "locked in a room".. that sounds weird.
Just have them sit at the kitchen table and apply the same experiment.

 

[Anh]

I pay the older one $10/w for hanging clothes/taking in/fold and put away. They help getting dinners ready ( no charge), make beds ( free), in the past the older one vacuum and mob the house clean bathrooms and toilets($20/w) but now i stop that as the job was not up to my standard.

So initially the income was used to spent all, after that i made the rule of spend half save half.

If they want something, they have to wait until the item is on sale, we never pay full price, if not, we will just wait. For kid games they play the trial versions and if they achieve at school, they get to buy their games. We also taught them the value of items, just because something is on sale does not mean it is cheap, even if it is cheap, whether we 'need' them or just 'want' them.

My kids are not demanding, if we say No, they will accept it ( of course we would give them reason why). they know we work hard and expect them to work smart.

 

[lizzie]

Junior gets pocket money each week and usually blows it at the canteen ... although when she finds something she really wants (like a ribbon bridle band for her horse) she understands completely that she has to save for it.

She also loves Cashflow (adult version) and Monopoly.

What I finded worked really well with hubby's older kids was that they got a clothing allowance twice a year (summer/winter) and it was their choice what they spent the money on. They quickly worked out they could get 4 Target t-shirts or 1 surf brand t-shirt. Yes - they made mistakes and bought things they never wore - or bought expensive items and didn't have enough left over for something else - but that was part of the learning process and responsibility

 

[matto_]

I cant impart any wisdom myself (bubs is only 1) - but at what age did people start?

I would consider we have this down pat.Our kids are 21,20,18,13,11,9 & 7(had to count then to make sure no one was missed),yes,the modern family.All the kids get money for doing different jobs or tasks,and this works well.We encourage saving for the bigger items,this works especially well with the older kids.

Wow - I had to count that twice (and out loud) - seven (7) kids. Not many families that size these days.

 

[jingo]

We fell into this trap too! Buying too many soft toys and other 'stuff' which ended up cluttering up our daughter's bedroom!!

Our daughter is 8, and we obviously buy everything she needs and I will still buy a toy for her from time to time without her needing to 'save' for it. She receives pocket money (meant to be each week) and has a number of 'jobs' attached to this. (eg cleaning teeth without us asking, brushing her hair, making her bed in the morning, keeping her room clean and feeding the cat).

We expect her to save half of the pocket money and have her deposit it into a savings account at the local bank. (Which I then transfer into an online saver as it has a higher interest rate!!)

We often slip up in remembering to pay her and at the moment we owe her a fair bit!!! (So she will have a lot of 'savings'!!)

What hasn't worked? We used to say "yes" to buying little things for them when we were out, they came to expect it and it became painful. Cash for chores - its a bit haphazard! We need a plan for allowance when they are teenagers.
I look forward to learning from others here, hopefully there's loads of great ideas from parents who've been there, done that!

 

[BMW]

we have 2 under 2, so a bit early yet to be teaching them about money.
well actually still learning myself ,
but one thing that worries me is the way i learn't growing up wont be available to my kids. For example i grew up on a farm and orchard, so earned my pocket money through picking fruit, fixing sprinklers, buying potty calves and selling steers to plowing paddocks etc. I know in town they could always work at mcdonalds or something, just doesn't seem as fun as working on the farm. just if only i could convince the misses

 

[Peter 14.7]

First and foremost they will model themselves off parents and those they surround themselves with to a large extent - for good and bad.

If parents want all the latest now, the child will most likely grow up to be the same and demand these things.

If the child hears the parents discuss things like what items provide value for money, or whether they really need to purchase something, or the importance of having some savings (as opposed to seeing them live week to week), they will learn a similar mindset in time.
.

Good one Weg.

I had not considered this learned behaviour but it is obvious. My daughter says the same things as us, even my slang, which unfortunately is half bogan coming from my country boy roots.

Hopefully we are on the right path here as she does see us do the right things: work in the office, manage our costs, not spend wastefully, renovate our IPs, even clean them when tenants trash them...

Regards Peter 14.7

 

[Peter 14.7]

I shouldn't have said "locked in a room".. that sounds weird.
Just have them sit at the kitchen table and apply the same experiment.

Thanks for clarification although I agree not being the room would make it a tougher test.

Peter

 

[Peter 14.7]

Junior gets pocket money each week and usually blows it at the canteen ... although when she finds something she really wants (like a ribbon bridle band for her horse) she understands completely that she has to save for it.

She also loves Cashflow (adult version) and Monopoly.

What I finded worked really well with hubby's older kids was that they got a clothing allowance twice a year (summer/winter) and it was their choice what they spent the money on. They quickly worked out they could get 4 Target t-shirts or 1 surf brand t-shirt. Yes - they made mistakes and bought things they never wore - or bought expensive items and didn't have enough left over for something else - but that was part of the learning process and responsibility

Good one Lizzie re clothes.

Presently, she likes what she calls "designer clothes" aka garish Barbie like fashion but not like Barbie branded. In the foreseeable future I see clothes as being a want needing moderation.

Peter

 

[Peter 14.7]

Our daughter is 8, and we obviously buy everything she needs and I will still buy a toy for her from time to time without her needing to 'save' for it. She receives pocket money (meant to be each week) and has a number of 'jobs' attached to this. (eg cleaning teeth without us asking, brushing her hair, making her bed in the morning, keeping her room clean and feeding the cat).

We expect her to save half of the pocket money and have her deposit it into a savings account at the local bank.

Dear All

We also do the above.

Except some tasks are givens for no money like teeth cleaning, brushing her hair. Collecting eggs are paid but brushing her horse is not however if she does not care for that animal is will be taken away. We go halves on wants but not wasteful ones like trinkets. She actually likes banking via Dollarmites and she gets small rewards under the systems and leads her class.

We pay 50c per chore and she averages $10 a week so $5 goes to Dollarmites.
Some weeks she is slack and gets only $5 to split.

Regards Peter 14.7