Comments on: Teaching Kids About Credit http://gailvazoxlade.com/blog/archives/129 Mon, 21 May 2012 01:53:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: kristin http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1082 kristin Wed, 28 May 2008 22:54:58 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1082 thnx :) my daughter still eats the coins, but when she realizes the TRUE value of money (and the lack of nutritional value), we hope to implement this plan. and we hope it works too! thnx :)
my daughter still eats the coins, but when she realizes the TRUE value of money (and the lack of nutritional value), we hope to implement this plan. and we hope it works too!

]]> By: gail http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1081 gail Tue, 27 May 2008 01:27:29 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1081 Kristin, the points you make are dead on. I define an "allowance" as the money you normally spend on your kids put into their hands so they can learn to manage it. I believe some money, given regularly, is important for learning how to prioritize, how to monitor and how to plan using money. Work for pay -- chores for extra money -- is fine, particularly when kids are trying hard to achieve a particular goal. But the "allowance" is the building block for creating a familiarity and skills with money. GVO Kristin, the points you make are dead on. I define an “allowance” as the money you normally spend on your kids put into their hands so they can learn to manage it. I believe some money, given regularly, is important for learning how to prioritize, how to monitor and how to plan using money. Work for pay — chores for extra money — is fine, particularly when kids are trying hard to achieve a particular goal. But the “allowance” is the building block for creating a familiarity and skills with money. GVO

]]> By: kristin http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1080 kristin Tue, 27 May 2008 01:02:18 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1080 i would think that 'when you go to work you earn money' and 'when you don't go to work you earn nothing', is a simple and easy lesson. everyone does something, either in an office or in the home. not too many people are unemployed by choice or living off the generosity of others. the tough bit is what to do with the money you've got, no matter how much or how little and to learn how much it costs to live. had i been smart enough, as a kid whenever i left the lights on and my dad said 'do you know how much that costs, it doesn't grow on trees', i'd have responded 'no, i have no idea'!!! kids need a cashflow, otherwise they won't know how to manage money. they are too young to get any real job, they're job is school. the money is the lesson. getting $2 a week for taking out the garbage isn't going to teach them to manage money in real life, maybe just teach them that they may or may not want to work in waste management. tracy j- tell your husband that your kids aren't getting an allowance, THEY are just managing the money YOU spend on them for their needs (with close supervision at first of course). i would think that ‘when you go to work you earn money’ and ‘when you don’t go to work you earn nothing’, is a simple and easy lesson. everyone does something, either in an office or in the home. not too many people are unemployed by choice or living off the generosity of others. the tough bit is what to do with the money you’ve got, no matter how much or how little and to learn how much it costs to live.
had i been smart enough, as a kid whenever i left the lights on and my dad said ‘do you know how much that costs, it doesn’t grow on trees’, i’d have responded ‘no, i have no idea’!!!
kids need a cashflow, otherwise they won’t know how to manage money. they are too young to get any real job, they’re job is school. the money is the lesson. getting $2 a week for taking out the garbage isn’t going to teach them to manage money in real life, maybe just teach them that they may or may not want to work in waste management.
tracy j- tell your husband that your kids aren’t getting an allowance, THEY are just managing the money YOU spend on them for their needs (with close supervision at first of course).

]]> By: Michelle http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1079 Michelle Mon, 26 May 2008 12:38:25 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1079 I'm of the camp that chores can be linked directly to allowances for children, and my reasoning for that is that although I don't get paid to clean my house, I do get paid to "help out" by means of my job. So for my children, they get paid for their "helping out" by means of their jobs/chores. If I had a cleaning service clean my home, I'd have to pay them, so the kids are learning that some hard work (really, not that hard: sorting their own laundry, alternating who cleans their bathroom, and the odd room clean-up session) results in monetary reward. And having a clean house and helping Mom and Dad so we have more time for family bike rides is a bonus for them. They get a weekly allowance of their age minus $1, with the idea that that $1 gets deposited directly into their bank accounts. I've been depositing $10 each per month just so they think they're saving more, which may be a downfall later when they do the math (hmmm, Mom takes $1 a week away from my allowance and with interest I end up with $6 extra per month? Score!). But for now they see the savings as a bonus every month, and they're more interested in putting some of their allowance money in there to build it up faster when they're saving for things like Build-a-bears and skateboard gear. Win/win in my books! I’m of the camp that chores can be linked directly to allowances for children, and my reasoning for that is that although I don’t get paid to clean my house, I do get paid to “help out” by means of my job. So for my children, they get paid for their “helping out” by means of their jobs/chores. If I had a cleaning service clean my home, I’d have to pay them, so the kids are learning that some hard work (really, not that hard: sorting their own laundry, alternating who cleans their bathroom, and the odd room clean-up session) results in monetary reward. And having a clean house and helping Mom and Dad so we have more time for family bike rides is a bonus for them. They get a weekly allowance of their age minus $1, with the idea that that $1 gets deposited directly into their bank accounts. I’ve been depositing $10 each per month just so they think they’re saving more, which may be a downfall later when they do the math (hmmm, Mom takes $1 a week away from my allowance and with interest I end up with $6 extra per month? Score!). But for now they see the savings as a bonus every month, and they’re more interested in putting some of their allowance money in there to build it up faster when they’re saving for things like Build-a-bears and skateboard gear. Win/win in my books!

]]> By: Marie http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1078 Marie Sun, 25 May 2008 02:19:36 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1078 Tracy J: How about matching funds? Once the child earns half the amount, you supply the other half. Some parents use allowances for fun stuff while others for clothing and little necessities (especially as teenager) while fun stuff must be earned (or used form the allowance). You might find a balance for both parents and child. Tracy J:
How about matching funds? Once the child earns half the amount, you supply the other half. Some parents use allowances for fun stuff while others for clothing and little necessities (especially as teenager) while fun stuff must be earned (or used form the allowance). You might find a balance for both parents and child.

]]> By: Tracy J http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1075 Tracy J Sat, 24 May 2008 19:15:04 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1075 My hubby doesn't believe we should give the kids any allowance.... he was taught that "free bread has tough crusts" and so they don't respect the money if it's free. I brought up your points about the lesson IS the money (saving, managing, etc) but he wasn't seeing it. I am a bit frustrated by that, but it won't work unless we both agree. My hubby doesn’t believe we should give the kids any allowance…. he was taught that “free bread has tough crusts” and so they don’t respect the money if it’s free. I brought up your points about the lesson IS the money (saving, managing, etc) but he wasn’t seeing it. I am a bit frustrated by that, but it won’t work unless we both agree.

]]> By: Heather Cook http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1077 Heather Cook Fri, 23 May 2008 20:40:38 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1077 Wow. I actually can't wait until my son is about 10 so I can try this. He's six and we're just navigating "allowance land". Wow. I actually can’t wait until my son is about 10 so I can try this. He’s six and we’re just navigating “allowance land”.

]]> By: Tracy J http://gailvazoxlade.com/blog/archives/129/comment-page-1#comment-1076 Tracy J Fri, 23 May 2008 17:26:10 +0000 http://www.gailvazoxlade.com/blog/?p=129#comment-1076 You are wise.... My oldest just got his first "job" yesterday! He is just 11 years old and just started a rather large paper route. I took him over 2 hours and he was crying by the time he was done (the wind messed up the papers big time!). He has been mowing lawns for cash around the neighbours... we bought a reel puch mower at a garage sale and he works hard with it. He is saving up for something BIG! BUT After yesterday's disasterous first run with the papers, I think he may be disheartened.... poor guy, he has a special thing to save for, and we said he would have to save for it on his OWN. I know you have mentioned it before.... the relationship of CHORES and ALLOWANCE. (I'll have to search for it) We haven't started the allowance thing yet, mainly because I didn't need him blowing it on candy and little crap toys. Now that he has a focus, it is time to start. I am very proud of him. You are wise….

My oldest just got his first “job” yesterday! He is just 11 years old and just started a rather large paper route. I took him over 2 hours and he was crying by the time he was done (the wind messed up the papers big time!).

He has been mowing lawns for cash around the neighbours… we bought a reel puch mower at a garage sale and he works hard with it.

He is saving up for something BIG!

BUT After yesterday’s disasterous first run with the papers, I think he may be disheartened…. poor guy, he has a special thing to save for, and we said he would have to save for it on his OWN.

I know you have mentioned it before…. the relationship of CHORES and ALLOWANCE. (I’ll have to search for it) We haven’t started the allowance thing yet, mainly because I didn’t need him blowing it on candy and little crap toys. Now that he has a focus, it is time to start.

I am very proud of him.

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