Ever since my TCKs were cuddled into the front pouch and brought to the market or store, they have witnessed how money can give them “stuff”. They understood all too quickly how this system of money or plastic card works.
I’m sure your kids are the same. They don’t just watch us. Toy manufacturers have caught on to this years ago. They sell fake money and plastic cards for pretend shopping. I’m not bashing toy companies, I actually think it is a brilliant way to teach kids about how money works IF taught intentionally.
As kids grow and mature, we need to teach them how to manage their money.
We do give our kids an allowance…sort of. They get paid for certain small jobs around the house like taking out the trash. They get paid for the work they do. If they don’t take out the trash, they don’t get paid. Then there are jobs that they have to do just because they are part of the family, like setting and clearing the table. Those they don’t get paid for.
Our youngest got bright eyes and a huge smile when she got her first paycheck. She was ready to go to 7-11 and buy some gum. It reminded me the first time our oldest got his first paycheck and we made the decision to teach our children about money management. It was time to teach Mei Mei.
We use Dave Ramsey‘s ideas because we like them. I’m sure there are other ways to teach your children, but here is what we do.
Each child has three envelopes.
- Saving: this is for large items that they need to save money for like skateboards, iTouch, dolls
- Spending: this is for the small fun stuff like gum, drinks, or stickers.
- Giving: Because we are a Christian family, we’ve taught our children that they have to give at least 10% to God. This envelope can also be for charity giving, which we’ve told our kids that they can put in more and use it towards that as well.