Enivio - Anything and Everything

As our children mature faster, and the pace of life in the world increases, it is important to teach kids young the value of money. As a kid I had absolutely no percetion of money. I didn’t know the difference between $2 and $20. However 10 year olds have cell phones and huge allowances now, and with all of this new money and gagetry amoung them, good spending habits must be taught as well.

I’ve been teaching my kids the value of money simply by alloting them an allowance every week by performing chores around the house. It’s nothing intense like scrubbing a toilet or planting a new flower bed (although I’d love it if they stopped eating the dandilions… or maybe that is the deer) but it’s things like doing the dishes and vaccuming their own room. The responsibility involved is obvious and most parents do this to their children from day one. However rewarding them for the activity shows them they will receive money for doing labor. It sounds basic enough doesn’t it?

I’ve taken it a step further however. I have taken the average cost of equipping my kids with new clothing, school supplies, toys and other items I may purchase for them throughout a month and I put that money on a Visa Check Card. I opened each of my kids a checking and a savings account, and I place that average amount into their checking account every month. They have their own Visa Check Card and go about using it on their own.

When they were younger, if we went to a store they would just chuck in a bag of cookies and not even think about it. Now that they have had their own money, I’ll tell you their views have changed considerably. My daughter said “Those cookies are 3.49. Let’s get the $1.99 ones!”

Now many people have had opposing views on what I am doing. The arguments I have heard include:
- They are too young to WORRY about money
- That sort of responsibility is the parent’s jobs
- Kids should bne outside playing not thinking about money

I agree that they are too young to worry about money, which is why this approach is so great. They don’t worry about a thing. They buy their own clothes (granted I am there, and help them with the math on account balances and item totals), buy their own snacks and other products. When they are out of money they make more. If they have a balance, then they can splurge on something fun. The whole idea is to PREPARE them for what is going to happen in several years anyway. They will get a job and need to be able to manage money. I am simply teaching them from an early age that managing money is not so much a chore as doing the laundry. It’s easy when you are responsible.

Many of my friends have gone ahead and put their kids on the same system and reported huge success. I really think I’ve hit the nail on the head here with a very good system.

Please post your feedback and comments. I am very interested to hear your point of view.