Tuesday, October 20, 2009

Money Matters, for Midgets

One of the things we took away from the Love and Logic class last year was that it's never too early to start teaching kids about money. I like this idea not only because it helps them to learn about saving money and buying things for themselves, but it also helps them to understand us when we say that things they are asking for are too expensive. And hopefully they will also understand more about the value of their toys, having seen how difficult it is to save up enough to buy them.

Amanda and I decided to give them an allowance amount equivalent to their age each month, but on a weekly basis. For example, since Lucas is 4, we give him $1 per week. In exchange for their allowance though, they have to perform one chore each. Lucas helps me dump all of the small garbages on Sunday night (the truck comes on Monday morning) and Emily helps to keep the crumbs off of the kitchen floor using our "Shark".

For slightly more expensive toys (>$5), I decided to match the kids money dollar for dollar if they are willing to save up for their half of the price. The first big item Lucas bought his with his own money was a set of small construction trucks (picture is below). I've been trying to encourage him to save for a decent Lego set, but he has a very difficult time denying himself the joy of Matchbox or Hot Wheels cars. But at $1 - $1.50 per car, who can really blame him.

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