Teaching kids the value of money

Sweetcheeks_3

I remember when I only had two dresses to wear however my children have a wardrobe full.

The difference being, in my childhood, we all had to 'make do' whereas these days kids are bullied for the lack of 'named posessions'.

tiff

Teaching them the value of money starts from a very young age. I agree a lot of people think their kids MUST have the latest things which are expensive. I know someone who bought their son a PS2 aged 5 during the year (not a birthday or Christmas present) and it sat in his room as it wasnt something he wanted or was interested in. What a waste of money! My son would only ever get a PS2 for Christmas and even then he would have to be much older. I learned though that they are happy with small presents, my son is 7 and his best present this year was the football cards album and 3 packs of cards which cost £5. His second best present was his Celtic football kit. They do like big boxes for some reason, but the contents dont have to be expensive!

Love-a-bargain_5

My friend has 2 teenage daughters and 'gives' them £2 per day. When I say 'gives' she has a notebook where she makes a note of how much money they are getting. If they ask for money from her for something, she marks it in the book, taking it off their running total. One of the daughters doesn't spend much and has amassed a couple of hundred pounds. The other one spends more but ALWAYS thinks twice when she asks 'Can I have that, mum?' and her mum replies - well it's YOUR money - do you want to spend it on that?! Usually the answer is no....

I think it's a brilliant idea and will be doing it with my two daughters when they are older (they're only 3 and 4 right now!)

trippy

In the weeks leading up to Christmas I went through our 3 year old's toys with her to sort out what she wanted to donate to the children who didn't get presents at Christmas time. The main object was to make room for all the presents she was getting but she still finds something she hasn't played with in a while and tells us we can give it to the other children. We also do the Samaritan's Purse Christmas Box which she really enjoys. We go to the shop and she chooses things that the little girl would like for Christmas. It doesn't necessarily teach her the value of things as she's perhaps a bit young but it teaches her that she's fortunate and that there are other children with less.

The other day she was playing with something at a friend's house and said she wanted one too. I told her she had to choose which toys she already had to swap for this toy. She soon forgot about it!

She also doesn't know that you can take the CBeebies magazines home from the supermarket as we just have a quick look and then put them back. She also doesn't realise that the mechanical cars etc move when you put money in. She just enjoys sitting in them playing with the steering wheel!

gibby

There is a guy similar to Martin but in the US

he has a book RICH KID SMART KID by R T Kiyosaki an excellent way to get your kids thinking the right way

also Rich Dad Poor Dad for adults.

available everywhere and a must as it simply shows you how to get out of debt and ahead., no matter how much you earn.

Just check out the reviews of his books on Amazon.


I would love for Martin to do this sort of stuff as it should be taught in schools etc

G

pavlovs_dog

from as young as i can remember, my brother and i always had a tin money box each in which to store our pocket money.

the value of money is often a difficult concept for a child to grasp, where as weight (ie how heavy the money box was) was something tangible, and soon taught us the benefits of delayed gratification

jimamberdog_2

Following the example set by friends of ours, we have started giving our two boys (aged 7 and 4) '10p stars' for doing jobs such as making beds, setting the table, drying up (and in 4 year olds case, getting dressed without making a fuss!). On a Saturday morning the number of stars on their charts determines the amount of pocket money they receive. Son number 1 does very little early on in week and then panics by Thursday when he realises he hasn't earned enough for his comic. He's all too eager to help around the house then!
This system seems to be working well- it's good for their maths, they help out at home (less work for me!) and my older boy really seems to appreciate the value of money- he no longer badgers me for things in the shops any more because he knows he has to save for them. He's a far more discerning shopper these days!

Malestrom

It does seem that kids have far less understanding of the value of money nowadays. My daughter (13) and son (9) are far more understanding than many of their friends because we simply do not have the money to waste. They both get regular pocket money, paid monthly into their bank accounts (which tends to prevent instant spending on sweets and other tat). We have a family rota attached to the fridge and the whole family have jobs to do. If they don't do their jobs, then they can have their money docked or even stopped although the threat of this has prevented us from ever having to do it. There is also some flexibility with regard to missed chores as we aren't running a prison camp but we do believe that it is in their best interests to learn that you never get something for nothing. We are trying to encourage our daughter to get a part-time job as she never has enough money to do all the things she wants and she is slowly coming to realise that Mum & Dad don't have bottomless pockets. I think that she'll be earning her own money within the next 12 months or so, which is far later than I would have liked but you have to tread carefully with these things when teenagers are involved. My son is the opposite, always willing to save for something that he wants, always willing to do extra jobs for extra money and he is the sole reason why we no longer run a book as the money was mounting up and we were having trouble coughing up the dosh when he wanted it!

It is very difficult when other parents spoil their kids so recklessly though. My son's friend, also 9, got given a mini-moto motorbike two weeks after christmas at a cost of nearly £200, for his birthday. Nothing wrong with that you may think but his birthday isn't until August! Do you really think he's going to be content not to receive anything in August - of course not and his parents will cave in and buy him whatever he wants because it happened last year too. Does he do jobs or chores around the house? No. Does he receive a set level of pocket money? No, because his mum buys him everything that he asks for. Does he understand the value of money? Does he heck.

When I turned thirteen my parents told me that I was old enough to earn my own money and that they would no longer be giving me pocket money. So I went and got a morning paper round. Shortly after, I got an evening paper round too. Then I got a sunday round as well. Then, my uncle offered me a job working in his fish shop on Saturdays and over school holidays, for £10 a day. It was flipping hard work and a ten hour day to boot and there was no favouritism just because I was his nephew, but I earnt a lot of money. When my parents refused to buy me a BMX, telling me that they were a fad, I went out and spent all the savings in my post office account and bought it myself. My Dad drove me to the shop to collect it and I can still remember handing over the money, it was one of the best feelings ever. I treated that BMX bike like nothing else, it was my pride and joy because I really had toiled to earn the money that paid for it. Its a lesson that many kids could do with today and hopefully one that my own are learning.

Liamaiden

My eldest Adam, is now 17 and doing his A levels but has worked since he was 13, doing morning paper rounds. Has always done extra if asked to do so and when he started the round, his pocket money stopped so he was self-reliant. Because he was in Year 8 he only got £8 a month, so his £8.50 a week for the round seemed like a fortune. He then started work for a local computer company through word of mouth, got another job through a friend working saturdays inputting, and when he turned 16 started working in a restaurant. Since last May he's saved nearly £3,000 whilst his mates working at the same place have nothing to show, but working nearly as much. Adam's bought his own computer, upgraded it, his own hi-fi, DVD player, video player, loads of clothes (has to look good for 6th form) and is now paying for his own driving lessons. I also have twin sons who will be 12 next month, who can't wait until next year until they can start doing a paper round. Adam has shown by example what can be achieved and they want to follow suit.
Hubby was made redundant nearly 3 years ago from a well paid job after 25 years, and one of the first things that went was the Sky movie channels, a tangible consequence. We've explained that things aren't as they used to be and they do appreciate the value of money now. And it all started when they were nippers........
Liamaiden

Zeldazog

I'm a single parent and I do struggle. I came from quite a poor family, and we didn't have a lot as kids. I wondered when the right time would be to start trying to teach my son the value of things.

A couple of years back, I realised that I had gotten into a regular habit of taking my son some chocolate or sweets when I collected him from school.

I wondered how I could break this bad for his teeth habit, so I asked him if he'd prefer to have "pocket money" instead. He agreed to give it a try, and as an incentive, I said that if he didn't badger me for chocolate when we got in, that I would backdate the pocket money to the start of the year. He did really well, was incredibly happy with 10 or 20 pence each day. His grandma did the same.

Mid summer, we'd been to Sealife, but he hadn't seen anything in the gift shop that he wanted - I will only allow him to have a small item from a daytrip (I figure I spent enough already!). On the way back home, we went to Woollies, and he saw something he really liked - a Megabloks Dragon. Asked for it, but I said it was too expensive at a tenner, but I said he could have it out of his pocket money. That was the starting point I think.

Now, any money he gets (change falling out my bag for instance!) goes straight in the money box. He asks very occasionally if he can spend it on something silly and I say he can, but it will take longer to save for the next dragon or bionicle. He's thrilled to get money in cards for his birthday, no matter how small an amount as he realises it adds up.

Since then, he's bought himself several dragons sets, well over £100 worth, and several bionicles that he specifically wanted.

I really couldn't afford a party for his birthday this year, 3 weeks after Xmas. I bought a couple of extra presents to try and make up for it, and actually still spent far less.

He asked if he could pay for a party for himself, but when I eplained that they cost more than say Draigar Castle that he got for himself just after Xmas, he understood that it was better to save his money.

I'm not sure that he fully understands the value of money yet, but he certainly appreciates that it doesn't simply grow on trees. He was worried after his birthday because he had several presents from me and was bothered that I must have struggled to buy them!

He really and truly appreciates any gifts he gets, no matter how large or small, and if we are out shopping, I've realised he simply doesn't just ask for things any more. He will usually ask if he can buy it with his pocket money. And he's the happiest, sunniest little boy, many people comment, even though he's got a lot less than others, and doesn't get to go to Florida every summer.

Not bad for a seven year old (who when he grows up is going to make a money making machine for me so I won't have to work any more!!!)

Luckily enough for me, I'm not up against what the original poster is, with someone giving in all the time. I do wonder if parents realise how they are not helping by giving their children everything they demand (I know its often "giving them everything I never had") - what will they do when they grow up and go out into the real world?