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* Nov 2008: The newsletter is on hiatus due to the downturn in the U.S. economy. By subscribing, you will be on the list when the newsletter returns in 2009.
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Teaching Fiscal Responsibility |
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[Editorial published 3/19/08]
Hi Everyone,
As the headlines this weekend focused on the government's choice to bail out Bear Stearns with taxpayer dollars, I recalled seeing a bumper sticker that said: "No Child Left a Dime". Instead of focusing on the politics of this situation, I'll turn my attention to what we can do as parents to help our children learn Fiscal Responsibility.
Last fall, I was frequently faced with a dilemma when my son would lose pieces from a Lego set. (This was before I learned how to order parts for discontinued sets.) Here was his beloved $5 Lego Racer that he challenged himself to re-assemble faster and faster, and now a couple parts were missing. "Mommy, buy me this set again! (pause) pleeeaazzze" I was torn because I wanted my son to be responsible for his toys but sometimes things get lost, and at the age of 4, he was powerless (re: penniless) to remedy the problem on his own.
A turning point was when I was visiting a friend's house and her 5-year old son was demonstrating the small Transformer that he had just bought with his own money. It didn't register with me until later just how important and empowering it is for kids to have their own money. Shortly thereafter my husband and I implemented the Super-X system in our home. I will save the details and the rationale of the Super-X system for another newsletter, but the result is that our 4.5 year old son earns dollars and has become "financially independent". He is responsible for buying his own toys, replacement Lego pieces, coin-op rides, etc. (I cover the tax and shipping charges.)
It took a few weeks before he successfully earned $5, and that was spent on a Lego Racer. That toy (like his friend's Transformer) was more valuable to him than a trip to the moon. Next came a $2 item, followed by a stream of $5-10 Bionicles. Now he will patiently save $10-20 for what he wants to buy. When we look thru the Lego catalog/magazine he'll ask about the prices. Then he will tell me what he thinks is affordable and what he thinks he can save up for (which tops out around $35). No more begging for $100+ sets. No more whining in stores -- instead he will scope out items and decide what to make a priority. He's content leaving a toy store empty-handed.
An amazing thing happened when I was shopping with him online in January. He was excitedly picking out Bionicle pieces that "he needed", but when I read him the total ($8), he paused, then told me that he'd rather save that money for something else! Wow! My little guy was actually managing money.
So far he hasn't earned more than $20 in a month, but what he's learned (and what I've saved not buying other toys) is invaluable!
Here are two resources for teaching kids about money:
+ The 1st article in this set discusses the outrageous financial expectations of American teenagers, possible causes of their misguided beliefs, and how parents can teach young kids about money.
+ The Fun-ancial Summer Camps at the Young Americans Center in Denver and Lakewood, CO aim to teach kids about banking, money sense, and how to run a business. Frankly, I wouldn't usually put "summer fun" and "banking" in the same sentence, but the reality (as per the MSN article) is that teaching fiscal responsibility is indeed - a great idea for kids.
I hope your week is filled with laughter,
Jill
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Last Updated ( Friday, 28 March 2008 )
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