We created a contract
My middle child is at the age where she thinks money grows on trees, what should I do?
Well, we have all been there. We instill the value of money into our kids once we feel they are ready to understand the concept. This timing can differ for each child, so use your best decision.
We created several "contracts" introducing specific topics to our children:
- Investing (70%)
- Saving (20%)
- Spending (10%)
We decided first to introduce the importance of a good work ethic, thinking, and the "CAN DO" attitude. As you will see in the attachment below, we made it as simple as possible so our child can understand the concept.
We made it quite simple, "You do this, you get paid this." As this is an introduction to making money and why we need it, we want to ensure that our child doesn't get comfortable working for money, as the next step will be to introduce investing and money working for them as the end goal.
Fines can be seen as penalties. If our child exhibits one of these penalties, they are fined the allocated amount. This 'Fine Contract" is aimed at teaching our kids several key realities:
- Your actions have consequences
- You are held accountable for your actions
- Dealing with defiance
This is the fun part. This allows our children to see how fast money can be "Wasted" buying things you don't need while also detouring immediate gratification. It was within three weeks before my seven-year-old daughter realized she didn't like paying for tablet time as her money was exhausted faster than she expected.
In conclusion, this was a quick blog about how we are approaching the value of money without kids, and if you have any suggestions, please share them with us.
Also, please find the quick excel file we created, that we use for our kids.
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