December Without Shopping?

Posted by Alenka  in Christmas Fun, Money No Comments »
December Without Shopping?

OK, I admit, I am not a huge fan of shopping any other day, let alone in December. People buying things they don’t really need; giving just for the sake of doing it; over-eating, over-drinking and over-partying… All the fuss and craziness, crowds and hysteria in shopping malls…

Don’t get me wrong. I love giving. I love meeting people. I love parties. Just not on command, because “it’s that time of the year”.

Here are some shocking facts about waste produced over Christmas:

Is Money a Gift?

Posted by Alenka  in Money, Parenting No Comments »
Is Money a Gift?

When children celebrate their birthdays or now, when Christmas is just around the corner I started to think about perfect gift for the children. Is it something they need? Something they want? Something that is clever and smart to do?

One year Tina invited her friends and asked them to contribute money for the PSP (portable playstation). She earned and saved some of the money, and she hoped to get some from her friends. I really appreciated her efforts to get her own money instead of just asking and bagging me for it.

But as I might think it’s a good idea, other parents obviously didn’t agree. I am always very pleased when anyone tell me what he wants or needs. It’s so difficult to buy a present to someone who already has everything.

Well, Tina got enough money to buy PSP ( I gave her some, too), but from half of her friends she got presents. And I must say those gifts were something she was really pleased to receive (it’s so much more exciting to unwrap the gift than open an envelope, right?).

It’s not Worth the Effort!

Posted by Alenka  in Money, Parenting No Comments »
It's not Worth the Effort!

My husband recently took a job to type and design the book for a colleague. He asked our daughter Anja to help him with the typing. And promising her to pay for her part of work made her quite excited about the job. She already made plans how she will spend the money.

Until… she chatted about it with her friends. And to my surprise they were not supporting at all.

“We are having holidays. Holidays are for fun, not work”.

“You are getting only 100 euros! It is not worth the effort.”

“So much work for so little money.”

I was literally shocked. Do the kids today really have everything and get everything without any effort? Is work really so little worth? Is 100 Euros really little money? How about the effort to earn her own money to spend it however she wants?

My kid would never…

Posted by Alenka  in Money, Parenting 3 Comments »
My kid would never...

When we least expect it, life sets us a challenge to test our courage and willingness to change; at such a moment, there is no point in pretending that nothing has happened or in saying that we are not ready. The challenge will not wait. Life does not look back.

Paulo Coelho

 
I don’t know why but today I remembered this little incident from several years ago and I want to share it with you.

Anja had a birthday and she invited some friends from the school. We planned to have a pool party but it was raining, so we decided to have a party in the house.

There were around 15 kids invited and they were playing just great. We had some games we prepared and just ate the cake. And when the party was coming to end I found some money lying on the floor. It was not small amount but rather large for the kid to carry around.

How playing Farmville helps your children to learn about money?

Posted by Alenka  in Games, Money 2 Comments »
How playing Farmville helps your children to learn about money?

I know, it’s another online game and we all are trying to keep our children away from TV and computers.  I was against it for a long time, but the kids had their winter holidays and I let them play. Then I started to play just to see what it is all about. And I found out, that if you include some learning, you and your child can actually benefit from the game.

For all of you who are not familiar with the game – it’s a Facebook application and the idea of the game is to grow your farm. You earn money and points (XP) by harvesting (and selling) your produce (milk, eggs, vegetables, fruits..). You can then buy seeds, trees, animals or decoration and buildings. As you progress you get rewards and neighbors, which help you by fertilizing your field and feeding the chicken, and you help them in return.

I must admit it is adictive and time consuming, but let me explain first, what valuable money lessons your child can learn from it.

First of all, you have to earn the money to spend it. You must think of the ways, how you are going to do that. Is it better to buy seeds, animals, trees? They all grow at different speed (taking different amount of time), so you have to plan your time as well – will you be able to harvest your crops, before they are whitered? You have to wait until you can harvest, which I believe is a strong component of the game. Our children are all too often in the NOW mode:).

Then you have all kinds of buildings and decorations, which are great, but they cost quite a lot of money (coins) and you have to save for them. How will you do that? In order to upgrade the farm (beside having enough neighbors) you have to think of paying for the upgrade (which is expensive) and still have some money for planting the seeds.

You can even buy tractor and seeder and harvester, but they require fuel. Some of it you get while playing, but it is far from enough, if you have large farm. You again have to decide if you want to buy the fuel or plant the seeds manually (that is by clicking a lot more).

You see, it is all about budgeting – the child have to decide what he will buy.  And when he will buy. Will he save the money or spend it? Is spending really a spending or is it investment?  You can even explain to him the term return on investment – you don’t earn all the money that you sell for, you have to pay for the plowing and the seeds, and only the difference is actually your income. When you include the time factor, the returns that look great (that is sell for more) doesn’t always get you more.

Here is an example (the plowing cost is 15 for both, so we will ignore that): you buy strawberries for 10 and sell them for 35. Your net profit would be 25. When you buy peppers for 70 and sell them for 162, you profit is  92. At first glance, the peppers are better, but… you can harvest strawberries in 4 hours and peppers in 1 day, so you can plant strawberries 6 times in a day, which increases your net profit to 150 (a day).

As I said the game is adicitve and time consuming (if you let it be), but again, you can make an agreement with your child, that he plays only on certain days (and therefore he has to choose the seeds that takes the required time and again, he is learning) or for certain amount of time. Around 15 minutes are just enough to harvest your farm and plant the seeds. It can take time to help friends and to send the gifts, which are not essential for the game, although you get points and rewards for that, but you can negotiate with the child to limit this to certain days.

We all play the game at home, at the evenings, competing with one another, and at the same time helping each other, sending gifts and fertilizing each other farm. We made a plan, so the kids can play after dinner for half an hour every other day on the workdays, and on Friday or Saturday they can catch up and play longer. Provided they have done all the homework and home work (errands).

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