Teaching kids about money

Started by Joselyn S.
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M K.

When my kids were young–like ages 6 and 7–I created a prize bin and had them do chores, homework, exercise, etc. to earn points to buy prizes. I'd pick up lots of little toys, books, etc., at yard sales and put them in a bin w/different color stickers on each item. Each color sticker signified a different point value. Then I made a list of chores and activities they could do to earn points. I even added things like running around the house 10 times or riding their bike for 10 minutes, which was great because they burned off a lot of steam. They could use the points to buy prizes from the bin. We had a notebook that we called "the bank," where they kept track of their points. They loved it, and it taught them about having to work for what they wanted (and how to add and subtract!). I taught them about credit by allowing them to buy a prize, even though they hadn't earned enough points yet. However, I'd add a few points to the price as interest, so they had to do a little extra to pay off the bank. The whole thing worked great, and I even got them to do things they wouldn't normally try–like learning to swim–because they wanted a prize so badly they were willing to do anything! We actually kept the system going through their tweens, but converted to actual money at some point. They also opened real bank accounts because the bank was offering $20 cash incentives for kids. At least 10% of money they received as gifts had to go into their savings account for college. Both kids are in their 20s now and are hard workers and good savers.

J

Joselyn S.

WOW! That's amazing! I love these ideas! Great to hear your kids are both hard workers and great savers now. You should feel really good about all the positive lessons you instilled in these teachings!!

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