The other day my son came downstairs and asked me to go to the store and get some batteries for his game. Not only did he come at me rudely but he came at me as if we have money to buy him whatever he wants when he wants it. I told him no more batteries because I told him to make sure he conserves his game and only plays a few minutes a day. I also told him that money does not grow on trees he said “Money is paper and paper comes from trees so money does grow on trees”.
I took care of his smart mouth then I realized that he needed to be taught a lesson about money and how he can’t just get what he wants when he wats it. I went out and bought him a bank and for every chore he does he gets 5o cents I will also add 5 dollars a week if he is good. Every two weeks (which is how most people get paid) he can count up all his money and spend it on one item but he must leave 5 dollars in the bank for savings.
The first 2 weeks we did this he collected 15.00 so he had only 10.00 dollars to spend. We went to Wal-Mart and I first let him pick out something he wanted he picked up a power rangers action figure that only cost 5.00 then he said he wanted some batteries which cost another 5.00 I told him that he could not get both because he has to pay taxes on his items. He looked at me weird (I know I don’t understand the taxes thing either) and I said you will have to put an item back because you don’t have enough money. He was very upset so I reminded him that he said “Money grows on trees and if you want to buy both items then find a tree”. After fighting with him for a few minutes and telling him that I can take his money back he chose to get the batteries and said that “I don’t think this is fair”.
I know that life is not fair and because he is only 4 I don’t want to put that much pressure on him because he does not fully understand how money works. I think starting early though is a great way to teach kids how to save and budget to get things they want.
How do you teach your kids to save money?