I say this A LOT to my lovely children, who sometimes think otherwise.
As the kids have gotten older, both my husband and I really believe that the kids need to understand the value of money and how hard it really is to earn it, and why spending it should take some thought.
When my 8 year old son had just turned seven, he was desperate for an iPod Touch. I suppose I could have gone out and just bought one for him, but really, he didn’t need the thing. However, I gave him the option of saving up for it, and if he could save up the exact amount he needed, then he could decide if he still wanted to buy it. We found out what it would cost with tax and wrote the amount down so he could keep track, and he started saving. Everything he got from his yiayia and pappou (grandparents), gift money, money earned from helping out, and every coin that he found from scavenging the furniture around the house, went in his money jar.
He saved for months until he had the exact amount he needed. We went to Best Buy and with this jar of cash and coins (the cashier was THRILLED to see those coins I’m sure), we paid for the iPod. As the jar got emptied, and every last penny was gone, he realized how much that iPod really cost him. He looked at me with puppy dog eyes hoping that I would let him keep his money and just use my own to pay for it. No such luck – a deal’s a deal.
I think the best thing we can do for our kids is teach them about money early on. We have started giving the kids a weekly allowance – $8 for the eight year old and $5 for the five year old. They have to save at least half each week – the other half they can choose to spend or save to spend on a bigger item. By items, I mean toys and stickers and video games and things they don’t really need. Things they need – clothes, shoes, books, etc, will always be taken care of me and the husband. The kids are really excited about their allowances and saving their money to see who can save more. Hopefully that feeling will last for both of them.
There is a great new iPad app called Learning Money with Leo, by the Royal Bank of Canada, that is available now and free to download. It’s a great app to help little ones with an early understanding of money. There are several games featured in the app including Gather the Coins and Sort the Coins. My 5yo enjoyed playing with the app and how interactive it is. The app allows you to create several accounts, one for each child. Along with the games, there is also a coloring book which my daughter LOVED, and a read along story that has a great message about money. Kids can also earn coins that can be used to purchase stickers for the online album. I love that it’s a free app that is both fun and educational – my five year old really likes it and has played with it several times. In fact, even her eight year old brother wanted to check it out and see what it was all about.
Do you think it’s important to teach kids how to understand and responsibly use money?? Do you give your kids allowances?
I have a $50 RBC Visa Gift Card to give away to one luck winner!
To enter, please leave a comment below telling me why you feel it’s important to teach kids about money.
Additional OPTIONAL Entry:
Tweet the following and leave a comment below saying you did – Enter to win a $50 RBC Visa card on @BOREDMommy ‘s blog – http://bit.ly/GYIzbC – Ends 4/20 #giveaway #MoneyWithLeo
- Open to Canadian Residents only
- You are free to enter this giveaway on other blogs but you can only win once.
- Winners will be chosen using Random.org
- The Winner will receive their prize 4-6 weeks after the end of the giveaway.
- The giveaway will run until April 20th, 2012
“Disclosure – I am participating in the RBC Learning Money With Leo program by Mom Central Canada on behalf of RBC Royal Bank. I received compensation as a thank you for participating and for sharing my honest opinion. The opinions on this blog are my own.”
UPDATE: CONGRATS to my winner: LONDIA!!! Thanks to everyone who entered!!