Money Sense

Nadia washing Ian's back with a washcloth (her initiative!).

I've given a lot of thought to the pros and cons of various methods of teaching kids to be wise with their money. I don't want to pay our kids for every chore they do because I think it's important for them to learn that we all have responsibilities as a family. I've been leaning towards giving a weekly allowance, but then as she gets older giving her optional extra chores, which she can do for money. I was surprised to read in some places where moms said they started their children at the age of 2. Thus far aside from wanting me to buy lots of treats at the mall (a pretzel and ice cream and ride the carousel for example), she hasn't really been asking me to buy things. For many weeks prior to Christmas she didn't even give me one idea of what she wanted. It was only right before Christmas that she asked me for a Sweetpea stuffed animal, which thankfully I had already purchased for her.

I should have taken the picture at the beginning instead of the end.

I've been asking her what she wants for her birthday, and until this week all she had said was balloons, cake, and a present. When I'd ask her what present she wanted, she would say a balloon. This week she found a VeggieTales DVD insert which was advertising various things that they sell. Well all of a sudden she wants everything they are advertising (a watch, placemats, an umbrella, etc.). I asked her how she was going to buy the items, and she proceeded to get some plastic coins (from the Fisher Price pig). She handed them to me and told me that she'd use these to buy them. So I decided that it's time to start giving her an allowance in the near future.

I'm thinking of giving her 3 quarters a week. How does that sound for a 3 year old? I want to give her at least 3 coins because I want her to use this bank. We had talked about this one in one of the classes that I have taught. She can take the money she puts in the church part of the bank to give during Sunday School. I'm thinking that the store part can be to save up for something she wants to buy for herself, and the bank part can be to save up for gifts she can buy family members for Christmas. I think each year as she gets older we would increase the amount of her allowance, and as she becomes able to to do more chores, she'll have the option to earn a little bit of money through doing something more than whatever chores she normally does. I can't believe she'll be turning 3 in two months!