Mom's First Credit Union
I've been trying to teach my kids to budget money by giving them allowances and responsibilities to go along with it. It's called Mom's First Credit Union and you can read more about it here. The trouble is that I have trouble letting them spend the money on anything but what they are supposed to be spending it on. The result is that they have never run out and therefore aren't really learning anything.
My ten year old son loves to save but has been spending more and more money the past several months (I was very brave let it happen!) until now we finally have results. He is not only out of cash but he is in debt $9 because we just realized he forgot to total in the $50 that he spent on his basketball league this year. He's going to have to take money out of his savings account to cover it and it's just about killing him.
When we go places he will sadly say, " I guess I'm not buying anything since I don't have any money." I am very sympathetic, "Ya, that's too bad," but secretly rejoicing inside. Poor kid!
The other day he was moping about it again so I told him to look through his checkbook and tell me where he might have wasted his money. After studying it for a few minutes he sadly read me the list: junk food, socks (because he ruins his he has to buy more), too much on Christmas presents, library fines, etc. He even had to spend $16.00 filling a cavity at the dentist!
Now if that doesn't make me the meanest Mom in the world I don't know what does. I got tired of nagging my kids to brush and floss their teeth (when I asked them if they had brushed they would lie to me) so I told them six months ago that they were their teeth and if they didn't want to take care of them then there was nothing I could do about it but they were going to start paying for their own dental work. They have been doing a pretty good job brushing ever since but Victor still had to have a cavity fixed. I hope it helps them both learn that taking care of their teeth is a serious business.
So Victor is finally learning what I intended all along. Money (teeth too!) doesn't last forever and he has to make difficult choices. At this point I still help them with those choices but when my kids are twelve they will be on their own. They will be in charge of their own finances and I am staying out of it, come what may. I would rather they learn with a few pennies and dollars when they're young than wait till they are adults and waste thousands like I did.
Labels: Teach Your Kids to Work
posted by The Lazy Organizer @ 11:45 PM
15 Comments
15 Comments:
Way to go, mom - I don't think you're mean at all but do think that you are teaching your kids some very valuable lifes lessons.
They may not like it too much right now but someday I'm sure they'll thank you for it! :-)
Love,
Jennelle
You Go Girl! Teaching about money cannot begin too early!
Tina
I love it! Paying for fillings. My son has a tooth he recently had to have extracted with a ginormous hole in it! I'm gonna have them pay for dental work too.
We just put the beginnings of your credit union idea into place last Monday night. Everyone seems to like the idea. Today, the topic on the way to school was how much shoes cost. Two of the kids need new shoes and are having to plan how they are going to get them.
When you take your kids shopping for things, where do you take them? Is that part of what you teach them, bargain shopping? I find, with five kids, it's hard to find the time to shop around myself, let alone, I'm thinking with them for their shopping. Forgive me if you've already blogged about this, but I'm curious how you teach them to get the best buy, if you do.
Cindi
Sorry to leave another comment, but I wanted to clarify after re-reading your post. At age 12 are you backing out entirely including tithing and savings etc.?
And, do you have them take their "checkbooks" to the store when they go?
Thanks!
Cindi,
I'm so happy you're trying Mom's First! You will have to let me know how it goes. I have a special checkbook register that I've designed for my kids to keep track of all their different accounts. I really want to have a bunch printed out so other people can use them.
To answer your questions, I have my kids keep their checkbooks with them in the car but I don't make them take them into the store. When we get back to the car they record any purchases they have made. If they don't bring their checkbooks then they can't buy anything!
We do a lot of bargain shopping as a family so they know all about trying to find the best price. We like to shop at garage sales and thrift stores. If I know they are looking for shoes and I find a good deal I will point it out to them. They are learning patience and not to buy the first thing they see. I don't take them on special shopping trips. They have to shop when I'm shopping.
I've only got three kids and I feel overwhelmed keeping them all dressed! I would have the kids buy all their own clothes but the problem is that my son gets bags of clothes from a cousin and my daughter doesn't. When she is older I think I will just pay her more to cover the cost of her clothes.
When they are twelve they will still be required to pay tithing and savings and such but they will be able to do whatever they want with their spending money as long as it's not immoral or illegal! Have you read Mary Hunt's book? You should get it.
You definitely aren't a mean mom, just a practical one who loves her kids and wants to teach them important life lessons at an early age ... all for their advantage in life! Way to go!
Have I told you lately that you're my hero? Your kids are so lucky to have you as a mom. Don't let anyone tell you that you're a big meanie. What valuable lessons they are learning!
Um. Yeah. Duh. That was me, not Gabie leaving the comment. Although you could be his hero too if only he knew you like I did.
Just out of curiosity, when did you start with the older kids? Are you doing it with Lovely, too?? I'm jsut afraid my kids are too young yet.
I think I started with my older kids when they were five. By that time they were so annoying to take to the store because they were always asking for things. I knew I had to do something to teach them about money.
I think that's when I started with an allowance but I used tickets. I switched over to the checkbook registers a little later. You could do the tickets with your small kids.
I printed out some cute stickers onto card stock and cut them up. Each ticket = 25 cents.
I think I will start doing that for Lovely in another year or so. Maybe sooner because she is already asking for things. Every time we go to the thrift store she wants me to buy her 10 books and toys.
I wish my parents had made me pay for my dental work growing up--maybe I wouldn't be having to pay SO MUCH nowadays for root canals, etc.
LOVE this post. We do things very much the same. As mother of five... I have taught them if they don't have the funds, (after careful and tight budgeting) then it is not bought with "borrowed" funds from mom.
I also made our daughter Susan pay for part of her braces. (15.00 a month) Mean? Maybe... but she sure caught on to how important it is to listen to her Ortho on NOT eating Skittles, Starburst, and the likes. She was able to get her braces off 2 weeks earlier than planned due to her good care.
My girls all babysit for jobs. They are not allowed to work at the Mall as I will not drive them 10 miles.... but most because they make excellent money out here in the East as babysitters. (10.+ per hour) Save, save, save.... So, we too make sure our kids know they are on their own for almost all their "wants", we provide the "needs" as in very limited "needs"!
Again... LOVE your post/blog!
...sorry, one more note...
"Needs" being a fairly relative term and often requiring parental definition! LOL
My Mom always felt sorry for me when I was young because I brushed my teeth and took good care of them and I still got cavities. My older brother would go to the dentist with dirty, mossy teeth and he never had a cavity.
Love the idea! I want to be mean too. So much better to learn money management and real life issues when young and still safe with the parents then older and having no clue that it costs to go to the dentist.. or wherever.
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