Friday, January 25, 2013

Personal Finance on the Playground

Do you ever wonder if anything you say or try to teach your child(ren) sinks in?

At supper last night, Kat said that the subject of allowance had come up among a group of kids at school.  When she told them that she saves her allowance, they looked at her as if she'd sprouted a second head.

They wanted to know why she would do that, and told her that they always spent their allowance as soon as they had the chance.

Her response was that she usually likes to save for bigger things that she wants and doesn't want "cheap $2 stuff that just breaks". 

She said the others told her that "just isn't right" and got up and walked away. 

Kat, with the Lego set she saved for and bought last April.

I don't know what makes me happier - that she is developing good money habits, that she voiced her opinions with confidence, or that she was listening to us in the first place!

Do your kids get an allowance?  If so, do they spend it or save it?  The general rule here is that whatever money Kat gets (allowance, money from extra chores, gift money) is divided as follows:  10% to the charity of her choice (usually the local cat shelter), 10% into her savings account at the brick-and-mortar bank, and 80% to save or spend as she likes. 
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