Is 5 years old too young to start eductaing about money
- Thread starter Dan_p
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Discipline - get them into the habit of putting their pocket money in the bank at the school banking day eg Comm Bank Dollarmite Account. The kids soon get to appreciate that money accumulates (& they get rewards every time they bank and collect 10 tokens).
My son has just started his own ebay page selling his old books and toys he doesnt want. He pretty much looks after the whole operation from taking the pictures, cropping them and putting them up the right way.
Mum and dad get half of the money na dhe gets the other half. Out of his half, half of that goes to his savings account and the other half goes to his spending money box which all he wants to use that for now is his model train set. He has his heart set on a $100 diesel engine. He is trying to think of other ways to achieve his goal including asking me for a pay rise.
Mum and dad get half of the money na dhe gets the other half. Out of his half, half of that goes to his savings account and the other half goes to his spending money box which all he wants to use that for now is his model train set. He has his heart set on a $100 diesel engine. He is trying to think of other ways to achieve his goal including asking me for a pay rise.
Here is a terrific article about a teacher exposing her young students to how the real world and how money works. I wish she was around when I was a youngster
http://www.dailytelegraph.com.au/news/sydney-nsw/knowledge-is-power-and-money-as-children-learn-a-valuable-lesson-in-life/story-e6freuzi-1226342154671
http://www.dailytelegraph.com.au/news/sydney-nsw/knowledge-is-power-and-money-as-children-learn-a-valuable-lesson-in-life/story-e6freuzi-1226342154671
Our son is 6, and we have him doing specific jobs to get pocket money, which he then saves to buy things he wants.
The hard part is the balance. I don't want him to love money, I want him to be its master.
The hard part is the balance. I don't want him to love money, I want him to be its master.
This is what we are trying to do as well. They learn fast though. My wife was making bread from scratch (not with a bread maker) and Kurt said this could be another way we can make money. You and I can make the fresh bread and grandad can build the shop front.
My 2.5 year old has two piggy banks, lol. A 'real' piggy bank and a 'truck money box'. He gets coins for doing good things like a poo poo on the toilet etc., and now when he finds a coin, he gets excited and can't wait to put it in one of the two options. I also have him paying for stuff at Bunnings and Woolies, he uses the credit card (but I don't show him the pin, just in case) or rarely, cash. He inserts the card, pushes the account and says thank you to the check-out-chick when all is finished and done. He loves it, the little lady charmer.
In teaching your kids about money, especially about small money, there's a real risk you narrow their mindset on to the pennies and they miss the big picture and big ideas.
Many parents who teach their kids about money tend to tell them to get a stable job, save their money, invest what's left over, and grow a portfolio of maybe 3 houses by 50.
Would it be better to tell your kid to go out and have fun, pursue his dreams, and if his dream is making a social network website, he should do that?
Many parents who teach their kids about money tend to tell them to get a stable job, save their money, invest what's left over, and grow a portfolio of maybe 3 houses by 50.
Would it be better to tell your kid to go out and have fun, pursue his dreams, and if his dream is making a social network website, he should do that?
He loves it, the little lady charmer.
just need to take the wedding ring off and youll catch a fish
just need to take the wedding ring off and youll catch a fish
Oh yeah, I see them smiling...
ANYWAY, today I happened upon something fairly special; missus and I were lying in bed in the morning, Alex comes in and the conversation turned to what he wanted to be when he is a grown up. Of course he couldn't really answer, but the answer to "What do you want to be when you're a grown up?" is quite simple: "Happy." What that actually means or looks like, I suppose, will be up to his upbringing, mindset, and making sense of understanding how the world works.
SO yeah, can I patent that, or am I going to be a famous philosopher in years to come?
We went to the local trash market and my then 3 year old picked up a toy from one of the stalls and asked if he could buy it. I asked him to ask the seller how much and she said $2. So I gave my son $2 and told him to pay the lady. He looked at the toy, looked at the $2 coin and put the toy back! I was impressed
I think kids are never too young to learn important life lessons, and I think the concept of "money" will be a life-long and significant education for them.
However, I think there are some more complicated ideas about money that may be difficult to teach a child such as loans and interest, and certain terminologies. Although, I would suggest that there are still basic principles that you could teach a child in a fun and easy way.
Money is simply a measure of value, and you could start by teaching your 5 year old about the idea of value and that some things are valuable, and different concepts of "value". I think this is really ultra important.
However, I think there are some more complicated ideas about money that may be difficult to teach a child such as loans and interest, and certain terminologies. Although, I would suggest that there are still basic principles that you could teach a child in a fun and easy way.
Money is simply a measure of value, and you could start by teaching your 5 year old about the idea of value and that some things are valuable, and different concepts of "value". I think this is really ultra important.
It seems children are learning at a younger age about how to manage money.
http://www.news.com.au/finance/money/children-count-on-savings/story-e6frfmcr-1226820546402
http://www.news.com.au/finance/money/children-count-on-savings/story-e6frfmcr-1226820546402
I wish my parents had taught me the truth about money when I was young. It wasn't until I was in my early twenties I had to unlearn a lot of lessons they had taught me about money. Mind you, to their defence, interest rates were around 18% and they educated me that all debt was bad. This was at a time we were really struggling to keep a roof over our heads and food in our bellies. Times have changed and they don't quite freak as much as they use to when I add another investment property to my portfolio.
+ 1.
Rich Dad poor Dad for Teens, or My four-year old the property investor (easy to read).
How about setting up 4 money boxes:
1. For Saving to buy at later date (e.g. doll, a ball, lollies, etc...)
2. For Giving (e.g. for church or charity or what you/they value, etc...)
3. For Investment (e.g. not too be touched, perhaps for future deposit on car or property, etc...).
4. For family presents/gifts
Start with $5 in coins per week/month and see where they put it. Soon in time you will see their financial preference!
I they cannot practice delayed gratification, nothing is put towards investment box, tell them that any money placed there, will be matched by you...
I think you hit the nail on the head. So many parents didn't (don't) teach their kids about money management and investing and it is not taught at schools. So where do you learn?
It is up to the parents to be good role models and mentors in this department.
I don't think it's taught in a practical way anywhere. It's more the theory in schools.
Warning: overuse of "inverted commas" ahead.
Our struggle is trying to balance our lessons with the "lessons" the kids receive at their other house.... the two houses have very different "rules".
eg:
- one house has lots of "tuckshop lunch" days
- one house has money available whenever one wants ie "But I want one!" (iPhone, iPad!) = new toy
- one house has Pay TV
- one house has multiple recent game systems
- one house has trendy "brand name" clothing
- one house has lots of takeaway food for afternoon tea, dinner etc
- one house has minimal (if any) chores
- one house has free money available for special events eg movies, local show (several $100) etc
- one house purchases items because their friends "the Smiths" have one (eg ski boat, currently unused for the past 2 yrs)
- one house has minimal savings, but generous "spending" money
On the other hand:
- one house has set pocket money (and enforced savings)
- one house has regulated weekly chores (possibly not *perfectly* enforced, I admit - I do end up feeding the dog more than agreed)
- one house will lend money for special purchases, but enforces the agreed payback schedule
- one house has a lonely, single game system
- one house buys from Target whenever possible
- one house has a piggy bank
- one house discusses "yield" and "return" and "depreciating assets"
- one house has a lack of regard for brands, products and "toys"
- one house (apparently) has "lots of money" that they withhold from the kids, mainly just to deprive the kids of a decent childhood (hah!)
- one house has a lot of debt, and regular discussions about why "we can't afford that"!
*heavy sigh*
.
Our struggle is trying to balance our lessons with the "lessons" the kids receive at their other house.... the two houses have very different "rules".
eg:
- one house has lots of "tuckshop lunch" days
- one house has money available whenever one wants ie "But I want one!" (iPhone, iPad!) = new toy
- one house has Pay TV
- one house has multiple recent game systems
- one house has trendy "brand name" clothing
- one house has lots of takeaway food for afternoon tea, dinner etc
- one house has minimal (if any) chores
- one house has free money available for special events eg movies, local show (several $100) etc
- one house purchases items because their friends "the Smiths" have one (eg ski boat, currently unused for the past 2 yrs)
- one house has minimal savings, but generous "spending" money
On the other hand:
- one house has set pocket money (and enforced savings)
- one house has regulated weekly chores (possibly not *perfectly* enforced, I admit
- I do end up feeding the dog more than agreed)- one house will lend money for special purchases, but enforces the agreed payback schedule
- one house has a lonely, single game system
- one house buys from Target whenever possible
- one house has a piggy bank
- one house discusses "yield" and "return" and "depreciating assets"
- one house has a lack of regard for brands, products and "toys"
- one house (apparently) has "lots of money" that they withhold from the kids, mainly just to deprive the kids of a decent childhood (hah!)
- one house has a lot of debt, and regular discussions about why "we can't afford that"!
*heavy sigh*
.
Educating about money
The about post brings to mind the Rich Dad Poor Dad story except the kids concerned are too young to make the analogy.
The about post brings to mind the Rich Dad Poor Dad story except the kids concerned are too young to make the analogy.
At 5 years old, he should be learning about how to be a good person, having a moral compass, and being exposed to as much things as possible (arts, culture, sports, literature, maths, money, science).
Any kid who grows up learning about money money money all day and only that, will have a high likelihood of becoming people who are pretty void of a moral compass, whose biggest wish is payday when their parents go to rest eternally.
Any kid who grows up learning about money money money all day and only that, will have a high likelihood of becoming people who are pretty void of a moral compass, whose biggest wish is payday when their parents go to rest eternally.
