Thursday, July 11, 2013

kids and saving money

So this past year Tony and I went through the Dave Ramsey Financial Peace series, where we watched 13 DVDs about finance. We learned a lot and thought the Financial Peace Jr. kit would be an easy way to start educating our kids on how to be smart with their money. This program emphasizes how children can earn money by doing doing age appropriate chores/tasks and when that money is earned they distribute the money in three different envelopes SAVE, SPEND, GIVE. Lola and Ellie each decided what they were saving for and how much it would cost. They also set aside a certain amount of money each "pay day" in their give envelope to take to church with them on Sundays. That way they can each give their own money they have earned to the offering plate. The first Sunday the girls brought their envelopes to church there was mixed emotions. Ellie in particular was very upset that she had to take her money and give it away, but I'll tell you when the offering plate came around they were so proud to give their money to church. Afterwards, I tried to explain how that money would help other children in need. It was one of those parents moments that melt your heart because both of the girls expressed how they were glad that they gave the money and can't wait to give more the next Sunday. 
Tony and I set up a list of expected chores (the one with the EX by them). These are chores the girls have to do because they are a part of our family and they do not get paid for them. We then set up other chores that were extra where the girls would earn $0.50 for each chore. We also made a bonus section for special things where the girls could earn $1.00. For example the girls helped me wash and dry my car the other day..BONUS! 

Below is Lola's chart. We went online and found exactly what she wanted to save for, a bassinet stroller for her many babies. It cost $40.00 online (though we found it for much cheaper later).
Below is Ellie's chart. We also went online to see what she might want to save for. Well in the process of saving Ellie's toy changed three time. First it was a triplet stroller for her babies, then it was a skateboard, and then finally a Pogo Stick (as you will see she ended up with neither). 

Today the girls wanted to count their money and see how close they were to their toy. 
They really wanted a trip to Toy R Us. 
In two months time here are their totals. 
Ellie's total: $25.50
 Lola's total: $27.50
We decided that the girls had enough money in their saving to see if they would be able to buy the toy they were saving for. Lucky them Toys R US was a bit less expensive than the online store where we first looked. Lola was ecstatic that she was able to afford her bassinet stroller. It was only $19.99 on sale for $15.00. She was able to buy her stroller and still has $11.00 in her savings. Though Ellie could have purchased a skate board and even a stroller with the money she saved, she fell in love with this newborn doll. One she saw it, she had to have it. Good thing for her she had saved enough money. The doll was $24.99 (mommy paid the tax- that a whole different lesson). Ellie came home with an empty saving envelope but with a huge smile. 

The girls' conversation on the way home from Toys R Us confirmed that they might be learning something form this experience. Ellie talked about how she was going to work hard to save $15.00 so she could buy the stroller that Lola purchased and Lola expressed how she was excited that she had left over money to save for something else. 

On a side note: Our girls have never been ones to ask for things in the store. Tony and I have never set a precedence where we buy them things when we are running errands, but they still ask/want for things sometimes and this program makes that conversation even easier to have. When Lola and Ellie go into a store they say things like, "man, I should have brought my money so I could buy this" or "mommy, how much is this toy, I want to save for this".  It also gives us a way to respond to them when they ask us for things. For example, when they ask for something at the store I often respond by saying "of course you can get that, I think you have enough in your saving" or "of course you can get that, you only have to save X more dollars". They seem to take that as truth and move on.

Taking them to spend their hard earned money at the toy store was so pleasurable. The girls were so proud and happy that they were able to pick out what they wanted and buy it with their own money. Just look at these pictures as proof.  

By the way Ellie named her baby Gracie Frannie - too cute! 

1 comment:

  1. So inspired! You and Tony are fantastic parents! LOVE Lola' dress:)


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