Kids and Money

Cason has been counting and wrapping the money from her piggy bank. She got the bank for her 3rd birthday, just over two years ago, and has been collecting coins (sometimes more aggressively than others!) ever since. We counted out $43.50 before we ran out of penny wrappers.

We decided that we will take the coins to the bank and exchange them for dollars. Then, she will get half of the cash to spend as she pleases. The other half will go in a savings account, to which we will probably add by matching whatever she puts in.

Does anyone have any other creative ideas about teaching kids about money?

Comments

[Sean McMains]

We give our young 'uns an allowance, and have them keep a tithe out of that in an attempt to establish that habit early. From there, so far I've been letting natural consequences take their course as much as possible: "I'm sorry you really want that toy, but you already spent your money on candy. You'll have to wait until next week or earn some extra."

[melissa]

$43.50! Cason is rich! Looks like she could teach me a few things about managing money.

Not sure if you are a fan of Dave Ramsey, but he has a really popular series of books to teach children about spending/saving. He also sells a bank with three different slots: one for savings, one for tithing (I think he calls it "giving"), and the other for spending. It is clear so she can see her progress in each category. I know he also matches his childrens' savings dollar for dollar.

[duane]

I'm wondering at what age most parents start the allowance thing. Cason's piggy bank total is pretty amazing considering she has NO income!! It was all spare change she found lying around the house (or on my dresser!). We had also thought about matching her savings dollar for dollar, or at least some kind of seriously compounding interest, but she's still a bit young to grasp the amazing wonder of savings and interest.