Friday, 18 April 2008

1 EURO A DAY


When Boogie and Lukie went to the supermarket yesterday, our son saw a Ferrari toy he wants his father to buy. My husband did not give in thinking our boys have a lot of toy cars. It will just add up to the big pile of messy "props" that is soon going to bury our home (lol).

Boogie reasoned out that its too expensive and we don't have money for that toy.

Lukie: "I have 10 euros, Auntie Susan gave it yesterday. Mama and I had put it in my piggy bank, we can just get it back."

Papa: "Parla con tua Mama"(Talk to your Mama).

So when they got home, Boogie and I talked about how we're going to teach him about money while our son was riding his BMX outside. Lukie came in and asked me if he could get back his money from the "piggy" and I told him he can't open it till it's full and use the money for more important stuff. I told him its for his REAL car or motorcyle someday. We also told him about a "real paying job" we will give him soon and he was delighted about the idea. It took us the a whole night and a day to think what "work" is he going to do.

Lukie received his first "real pay" from his "first real job" tonight by fixing all his brother's toys scattered everywhere. Later, he swept the floor of the dining area(not with the vacume cleaner). Then he was more excited to mark the calendar about his "primo"(first)pay than to get the 1 euro from his Mama.


CNNMoney.com shares us: Money101 Lesson 12:Kids and Money:

Top Things To Know:

1. When it comes to teaching kids about money, the sooner the better.
Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.
Long before most children can add or subtract, they become aware of the concept of money. Any 4-year-old knows where their parents get money - the ATM, of course. Understanding that parents must work for their money requires a more mature mind, and even then, the learning process has its wrinkles. For example, once he came to understand that his father worked for a living, a 5-year-old asked, "How was work today?" "Fine," the father replied. The child then asked, "Did you get the money?"

2. Once they learn how money works, children often display an instinctive conservatism.
Instant gratification aside, once they learn they can buy things they want with money - e.g., candy, toys - many children will begin hoarding every nickel they can get their hands on. How this urge is channeled can determine what kind of financial manager your child will be as an adult.

3. Seeds planted early bear fruit later.
It's important to work on your child's financial awareness early on, for once they're teenagers, they are less likely to heed your sage advice. Besides, they're busy doing other things - like spending money.

4. An allowance can be an effective teaching tool.
When your kids are young, giving them small amounts of money helps them prepare for the day when the numbers will get bigger.

5. Teenagers and college-age kids have bigger responsibilities.
Checking accounts, credit cards, and debt are as elemental to the college experience as books and keg parties. Teaching high-schoolers about banking and credit will make them more savvy when they leave the nest.

6. Even investing should be learned early.
High schoolers can and should be taught about the market - using real money.

6 comments:

Analyse

wow, that's nice tips. got to take note of that. and hey, not only you taught him money matters, you also taught him responsibility. hitting two birds with one stone!

Layad

Nice work, Manang. Hope he learns how to manage his increasing piggy bank hehehehe...

megamomph

Well said, Lovelyn!
Here in the Philippines where the street vendors and beggars are kids, I also use it to educate the kids about money and working. The lessons really stick.

lovelyn

Ciao Analyse,

Yeah, lets just hope they keep it with them always.
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Ciao Layad,

Hehehe, he might end up having more money than his poor mama. WE teach him to save cause we can't do it(lol). Sort of - so that they won't end up like us :-).
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Ciao Megamom,

Surely it would. Its so sad to think of these children. Forced to be grown ups when they're suppose to enjoy the magic of being a kid.

raqgold

yep, we should start them early talaga. one of MC's ninang opened a bank account for her and instead of giving her gifts, she deposits money. and MC goes to the bank to update her booklet, ayun, mas tuwang tuwa sya kasi iba nga naman. actually, meron na rin kaming savings account for the kids ever since. andun lahat nung pumapasok sa piggy bank nila, but kudos to you for giving him a 'job'

KK aka Tina

Great money post Lovelyn :) ! It's great to hear that Lukie is learning his money lessons early too.

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