There is a synopsis at http://www.growwealthy.com/wc.htm

[...] Get Rich Slowly [...]

I often worried about whether my youngest three children will ever understand the value of a dollar. When I had my two oldest children (they are both now 16) me and their father didn’t have a lot of money. We managed on just their father’s salary while I went to College. Over the years my finances have changed significantly and I have noticed the difference in how all five of my children are about the value of money. The 16 year olds are very careful about how they spend their money. My 11 year old has just started wanting to save his money. But, he stillo needs work. My 5 and 4 year olds… forget about it!! They are always asking me for toys when we walk through any store. I am sure that their ages have a lot to do with it, but I will be using your tips with my youngest two.

Thanks for the great post!!

Shana Albert

As to the thread about teaching kids the value of money, you may find this short piece of interest:
http://www.asahi-net.or.jp/~xs3d-bull/essays/1995/needy_children.html

It describes how I ‘solved’ the problem of handling the clothing allowance for two teenage daughters.

1) connecting chores to allowances: We wrestled with the issue of connecting chores with allowance too. We didn’t do it initially – many “experts” say not to (“it will turn them into mercenaries”, they say. “They’ll only do things if you pay them”).

On the other hand, and to exaggerate the point to make it clear, I found that instead, my kids turned into socialists (“I don’t earn money – I just GET money, even if I don’t do my chores, or do them poorly”).

There’s a great article on the subject here: http://www.fool.com/fribble/2000/fribble000823.htm

We’ve since changed our approach – we now connect chores to allowance and other non-monetary benefits. We are much happier with this system, and frankly, the kids haven’t turned into mercenaries, after 2 years of this!

2) ease of use:The problem with most approaches we want to use – the ones that help us teach our kids so many important life lessons – is that they take up too much time! We start off with great zeal, but then tail off pretty quickly. Life is just too busy

After much searching and trial and error, we’ve now found an amazing website that helped us create a terrific system that is also easy to do. It’s at http://www.activeallowance.com

3) Empowering the children: We now give our children an allowance that enables them to buy a range of things we used to buy them. But since they now make the decision, THEY make the value judgement each time instead of us. They’re getting some outstanding learning about how life is about “making choices”, from “how hard (or intelligently) they work for their income” to “is it really worth it, now that I’M paying for it”.

We’re not spending any more than we did before; we’re just putting the decision-making into their hands. It’s been fantastic!

For a while there was a constant nagging of buy me this or that every time we went to Walmart.

Frankly I tired of it quickly and tried to think of a reward/reprimand system.

First, we tried awarding poker chips for chores (each chip being $0.50), but not enough motivation. They had to get used to having money to spend before wanting to work for it. So we gave out one “free” chip a day every day they were with us. Roughly $10 per month. If they wanted more they did more. If they had attitude it could cost them a chip.

That was hard to keep track of. So we came to our current situation that works very well. First of the month every one gets $10 in chips. You want more you earn it. Each of them has a kitten. They have to $1 for food every month.

The boy has caught on the fastest in learning how to save and earn more. The youngest girl has learn to extinguish the need to spend her money on something by buying something small so that she can save the rest.

They are expected to spend there money on their toys and stuff that is not something they need. I realize $10/month is not much but when everything else is given then $10 is alot.

Uhm….

Stuff found while looking for stuff:
ILAQ:
From pre-9/11, 2001, The Onion proves its prescience by accurately anticipating our future today.
What the U.S.of A. has to look forward to with the Dems in control of Congress.
PICTURES THAT MOVE:
This v…

Teaching kids the value of money…

Filed under: Blogs , Literacy I ran across this posting the other day about teaching kids what money…

Oh gosh. That’s disgusting.
Especially for children.

Type for your life…

Awesome game – I got the 23 (57560) spot on medium and the 40 spot (15780) on impossible.  But that’s……

They also have other books & tools for older kids as well. I think they have quite a few good resources as well.

[...] You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Share and Enjoy:These icons link to social bookmarking sites where readers canshare and discover new web pages. [...]

A close friend forwarded me this link and it was great to read about your experiences. I run a robotics facility and work with children ages 11 and up along with the occasional 8-10 year old.

While working with these children, we worked together to develop a money management tool called Young Money Manager http://www.youngmoneymanager.com. It teaches children how to manager their money by providing them with an account funded with ‘virtual’ or ‘real’ money.

Children can set financial goals, allocate toward savings and spending money, learn financial terminology, track spending and savings activity, etc.

Parents can post task for their children to do to earn money, approve or deny money requests and receive email updates whenever a transaction occurs on the child’s account.

The best way for a child to learn the value of savings and spending is through experience and being aware of their spending and saving activity.

We also released a Young Money Manager debit card so parents and relatives can load allowance and gift money directly to the card. This has been a great hit with the families, because the children really begin to understand, through experience, that spending has limits and money has to be earned.

we are proud of this fun and useful tool. If you think it can help you and your family teach valuable skills to your children, please go online at tryout the site. It is free and a lot of fun.

http://www.youngmoneymanager.com

I agree that it’s easy to get into the entitlement mentality if money is just handed to you and you have no responsibilities for what it is spent on. I also see that it causes kids to get into the “I won’t rake those leaves unless you pay me, Dad”-mindset if you start paying for odd jobs around the house. I really liked reading the comments about giving your kids the opportunity to be creative in how they “find money”.

Money is nothing but a token, which has value only if issuer promises to redeem it against “goods and services”. If such a redemption agreement does not exist, people who control the money supply will become very very rich at the expense of others!

Any token/currency without redemption obligation is fake. Will you accept a casino token unless they agree to redeem it at the end of the day? If not, why do you accept currency that does not have any redemption obligation in terms of goods and services?

Reality is currency/token without redemption agreement make the issuers rich and those who accept it poor! This is why one particular tribe that control money supply is simply getting rich day by day, not because they work hard or because they are more intelligent than the rest of us.

These money supply tribe today has “enslaved” the whole world by printing fake currency without redemption agreements! They control the global banking and media, through these everything else.

Teach this to your kids and liberate them from the clutches of “money supply without redemption” tribe……