My Seven Year Olds Million Dollar Plan

My kids have a chore list taped to the wall downstairs.  While I don’t require them to do these chores everyday when they do the chores they get a quarter for their bank.  My seven year old gets particularly excited about the change that he gets for doing chores!  He adds it to his bank right away and then proceeds to tell me how much money his bank says that he has.  (Its one of those digital ones that counts the money as you add it in).

Teaching Financial Responsibilty

Yesterday as I was walking through the living room I watched as he took a quarter and slid it half way into the bank and then pulled it back out and watched as the number on his bank continued to go up.  When I asked him what he was doing he said he was getting more money.  He was going to do that until he had $100 so he could buy some more legos.  Part of me wanted to giggle a little bit, then I realized that I needed to try and explaing to him that this was NOT how it worked.  Just because the number on your bank goes up does NOT mean that you actually have MORE money.

I realized yesterday that while he understood that he needed to have a certain amount of money to buy something, he didn’t understand that just because it looked like he had $50 doesn’t mean he really did.  I really struggled with teaching him exactly what that meant.  How do you explain to your child that is just learning about money and how it works that the dollar amount he sees is NOT what he really has.  So we decided to take his bank and empty it, reset it and start all over again.  This would give us a clean slate and he would be able to see just how much money he really had!  I am happy to report that he was VERY excited with his $13.42!!

I was also able to find some other great teaching tips on Money As You Grow!

How do you work to teach your kids the value of money?  Do they have their own savings that they can watch grow?

Tailor Made Momma Disclosure:  Post presented by Genworth Financial

Comments

  1. Lol, that’s so cute. I really need to start doing something like that with my kids.

  2. Karen D
    Twitter:
    says:

    This reminds me of when my sons were little. We lived in a small city, and often walked in to town. One day, when it was time to go home, I told them, “Time to go home, I ran out of money”. My son’s response…”Do you still have checks?”

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