How Do You Teach A Kid About Money?

[uscitizen]

Being cool back then was overrated. Better to be cool later once you decide what cool is.

 

[Charles_Main]

An allowance is a good start. One they have to earn.

 

[blu]

No votes for sharing the family budget with a HS kid?

I don't show him the whole budget, mostly because its a python script that I wrote and he doesn't know how to code, but my stepson is only 8 and he pretty much knows all the $ stuff that flows through the house. I never really understood why it was such a big secret with a bunch of parents. he knows I work hard for it though, often 10-14 hours a day on the computer, some days from home, so he sees me earn it, and now hes interested in allowance and even setup some "contract" with me and his mom in order for him to own his own money

 

[blu]

We have been unable to have children together, but what my parents did with me, is from about 15 years onward, I had to pay for everything I wanted that was not a necessity, myself....even my first car, and my first car's insurance....all from me having to work to earn the money for it....even extra clothes, over and above what my parents bought me for back to school....I had to pay for it....

that was enough of a lesson.

i had the same thing, including paying for my own cell phone, etc. bought my own car, paid the insuarnce, paid repairs, etc.

 

[blu]

I plan on giving my stepson and any future kids of my own their real lessons in money with businesses that will be up and running when they are teenagers. right from the beginning they will see exactly how accounting is done, how things are budgeted, how future budgets are made against uncertain income amounts, etc.

depending on how they do in school, they also be required to get part time jobs, to see how much working for nothing and working for someone else sucks

 

[Madeline]

I like the idea blu, but what sort of business? And why must you be the one to set it up?

IMO, running a small business is a more secure, more pleasant way for many to make a living, but for the folks in my family, it is never even an option. I think that's because no one ever modeled this behavior for them...me included. What a shame.

 

[chanel]

I have a kid in her 30's, so I'm not an active parent any longer. When she was little, there are things I wish I had done differently but she's turned out more or less okay thankies to some lucky accidents.

One thing that became a lifelong blessing was she got hired on as a receptionist/general dogs' body at a small credit counseling office when she was in high school. The owner eventually turned over most of the responsibilities to her...depositing checks, meeting with clients, etc. She knew good and well what a FICO score was when she was 16 and 17, and back then, few adults knew. It has been a tremendous assist to her.

What would I have done differently? I'd have let her see the budget. What I earned, what I spent it on what, etc. Now, if we had been terribly financially stressed I might not have done this, and I wouldn't do it with a kid who was in middle school or has emotional problems. But by high school yes, all things being equal...I think a kid would be able to grasp the family budget and to know some things are not for sharing outside the family.

How did you/do you teach your kids about money? Is this an urgent matter to you?

I went to a parenting workshop many years ago entitled "Teaching your kids that money does not grow on trees". it was very informative. I didn't follow all of their advice, but it did help me make my kids more cognizant of how much things cost.

The facilitators suggested giving even very young children an allowance and making them pay for everything they want: gum at the checkout, snacks at school, scout dues, etc. They also said to have them put a percentage toward charity and a percentage toward savings. She said the allowance could be as much or as little as a parent wanted or could afford. I thought it was a great idea.

We tried the allowance thing for a while, but we weren't consistent. But I would allow the kids to shop with their own birthday money and make smart decisions as to whether they were wasting it or not. They would get very serious about their choices.

We also made the kids starting working summers at 14. Excellent experience besides just the money.

My older son has champagne taste when it comes to big items like guitars and recording equipment and whatnot. He also goes to concerts several times a month and likes to wine and dine his women. But he worked two jobs this summer.

The younger one holds onto money and rarely spends a dime. I have a feeling he'll be more financially secure than his big bro.

 

[Douger]

No votes for sharing the family budget with a HS kid?

I had step kids.I have always kept a diary of every nickel I ever spent. Even when I blew a grand a day , it was recorded.
I showed the step kids all of it. From titty bar bills to private flights to the Bahamas or the Dominican Republic.
Blew their minds and didn't help them in the least.
2 lost their houses, went bankrupt and are on food stamps, although employed.
The third is on the edge. Debt up the ass and making 50% of what he made years past.
They ALL fell for the "house is an ATM" scam.

Something about horses and water comes to mind................

 

[topspin]

great parenting doug, maybe you could teach them how to run to a third world country and pose as though it's better.

 

[blu]

I like the idea blu, but what sort of business? And why must you be the one to set it up?

IMO, running a small business is a more secure, more pleasant way for many to make a living, but for the folks in my family, it is never even an option. I think that's because no one ever modeled this behavior for them...me included. What a shame.

well I already work at a business that four of us started, and using $$ that should be made from it over the next couple years, my gf/future wife & I will be making other ones that shes going to run. also, I would prefer if its one I run simply because then I can be sure my stepson & any other kids are really learning stuff instead of just wasting time pushing papers around for $7/h

 

[lizzie]

What my parents did, and what I did with my own kids, was make them earn their money at home by doing little jobs (washing dishes, cleaning, etc). Let them spend it on the things they want, but when they spend it foolishly, make them face the consequences of said foolishness (ie don't give them more money to go back and do with it what they should have in the first place). Help them learn how to budget by showing them the bills you pay monthly, show them how much your income is, and let them see where the money goes.

 

[kwc57]

A few years ago in the dark ages.....maybe 4 years ago, AT&T didn't have unlimited text message packages. You bought packages with X number of texts and then paid for each one over. We had a couple of snow days where the kids stayed home. My son (13 at the time) had a little texting party with his girlfriend. When I first got the bill (I've since turned off the detail on the print statement), it came in a large envelope and was literally a stack of pages. The texting portion of the bill was something like $165. I look at the detail and there were like two and three text messages within the same minute......minute after minute. I thinks to myself that this is one of those classic computing snafus where a glitch in the system threw a bad bill out. I called AT&T. Oh no, your bill is correct sir. Mr. Fast Fingers got a strong lesson after that. You get to pay the bill obver and beyond what we set up for your package. He had just enough birthday and Christmas money stashed away to cover it. Even brought us about $10 in change, pennies included to pay it. He never did that again.

 

[chanel]

You know its funny Madeline that you ask because the women in my family always handled the money - my grandma, my mom, and myself. I asked my older son if he wanted to learn what I was doing one time, and his response was "I plan on marrying a smart woman so I don't ever have to do that." I told him he better start working on that because I sure as hell won't be paying his bills after college. Lol

My husband has not seen a paycheck in 23 years.

 

[blu]

A few years ago in the dark ages.....maybe 4 years ago, AT&T didn't have unlimited text message packages. You bought packages with X number of texts and then paid for each one over. We had a couple of snow days where the kids stayed home. My son (13 at the time) had a little texting party with his girlfriend. When I first got the bill (I've since turned off the detail on the print statement), it came in a large envelope and was literally a stack of pages. The texting portion of the bill was something like $165. I look at the detail and there were like two and three text messages within the same minute......minute after minute. I thinks to myself that this is one of those classic computing snafus where a glitch in the system threw a bad bill out. I called AT&T. Oh no, your bill is correct sir. Mr. Fast Fingers got a strong lesson after that. You get to pay the bill obver and beyond what we set up for your package. He had just enough birthday and Christmas money stashed away to cover it. Even brought us about $10 in change, pennies included to pay it. He never did that again.

I am so glad to hear this, I had friends parents (especially parents of girls) who were forking over $150+ a month just in text messages that their kids went over the limit, and they never got their phone taken away etc. it was crazy. I had to pay my own bill and would tally text messages to make sure I didn't go over b/c my dad would have let my phone get shut off before he helped pay for it if he found out it was over text messages.

 

[kwc57]

You know its funny Madeline that you ask because the women in my family always handled the money - my grandma, my mom, and myself. I asked my older son if he wanted to learn what I was doing one time, and his response was "I plan on marrying a smart woman so I don't ever have to do that." I told him he better start working on that because I sure as hell won't be paying his bills after college. Lol

My husband has not seen a paycheck in 23 years.

If my wife gets hit by a bus, I'm totally screwed!!! I can do it, I did before we were married......but I happily turned it over to her when we got married. She's a type A anyway and if I'd done it, we would be fighting like cats and dogs.....which we do sometimes anyway....but not about money.

 

[kwc57]

A few years ago in the dark ages.....maybe 4 years ago, AT&T didn't have unlimited text message packages. You bought packages with X number of texts and then paid for each one over. We had a couple of snow days where the kids stayed home. My son (13 at the time) had a little texting party with his girlfriend. When I first got the bill (I've since turned off the detail on the print statement), it came in a large envelope and was literally a stack of pages. The texting portion of the bill was something like $165. I look at the detail and there were like two and three text messages within the same minute......minute after minute. I thinks to myself that this is one of those classic computing snafus where a glitch in the system threw a bad bill out. I called AT&T. Oh no, your bill is correct sir. Mr. Fast Fingers got a strong lesson after that. You get to pay the bill obver and beyond what we set up for your package. He had just enough birthday and Christmas money stashed away to cover it. Even brought us about $10 in change, pennies included to pay it. He never did that again.

I am so glad to hear this, I had friends parents (especially parents of girls) who were forking over $150+ a month just in text messages that their kids went over the limit, and they never got their phone taken away etc. it was crazy. I had to pay my own bill and would tally text messages to make sure I didn't go over b/c my dad would have let my phone get shut off before he helped pay for it if he found out it was over text messages.

As I recall, he also lost his phone for a while too.

 

[Wicked Jester]

We've always used our restaurants as a lesson in economics. Explain to them about food costs, payroll, profit margins, bottom lines, Taxes yada yada yada....Our twin daughters have taken to it quite well. They've got a firm grasp on reality.

We also attach set amounts on certain chores. The easier chores, that require less thinking pays less than the chores that require more thinking. They fully understand that picking up a garbage can and tossing it in a truck requires very little thinking, and pays accordingly. They fully understand that a doctor performing brain surgery requires brilliance, and pays accordingly.

 

[blu]

We've always used our restaurants as a lesson in economics. Explain to them about food costs, payroll, profit margins, bottom lines, Taxes yada yada yada....Our twin daughters have taken to it quite well. They've got a firm grasp on reality.

We also attach set amounts on certain chores. The easier chores, that require less thinking pays less than the chores that require more thinking. They fully understand that picking up a garbage can and tossing it in a truck requires very little thinking, and pays accordingly. They fully understand that a doctor performing brain surgery requires brilliance, and pays accordingly.[/B]

Thanks for this. During high school summers I worked at a place my dad got me a landscaping job. it fucking sucked, in the new orleans summer heat ( 100 degrees, 99% humidity ) all day every day, but it paid much better than any other job I could have gotten then.

Anyway, at this job the guys who had been working there from 18 years old to their current age of 40, 50, 60, etc couldn't understand why they who worked hte hardest in terms of manual labor output got paid siht compared to people who sat in the office all day. When I tried to explain tot hem about the mental power required for the job (nothing) compared to what it takes for the office jobs, they weren't very receptive. I also tried to explain it as how important our jobs were to the benefit of the company. Meaning anyone can cut grass, pull weeds, etc, but what would happen if all the accountants suddenly got up and left?