Posts Tagged With 'teaching children about money'

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?

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).

Travelling with Children

Posted by Alenka  in Money, Parenting No Comments »
Travelling with Children

Last week, when the children had their holidays, we spent in Tuscany, Italy. We visited all famous cities such as Pisa, Lucca, San Gimignano, Siena and Florence, climbed the towers, drank coffee at the sidewalks, tried wine (not the children:)) in Chianti region and ate a lot of icecream and pasta every day – to the delight of the kids.

I will write another post with the details and photos, for now I want to emphasize a few things, that seem important when travelling with children.

  • It is essential to plan a whole trip in advance.
  • Reserve the hotel in advance. With children you can’t just stop where-ever you want and find some place to sleep. It is harder to find the hotel with (free) family room, or room with more beds (say 4), so do your homework and search the net.
  • Get the children involved in the planning, so they know in advance where they are going, what they can expect, have them find some materials in books (you can get the guides at the local library) and let them express their wishes (they get more excited about a place if they saw a nice photo of it)
  • Read a guide for yourself or search the net for stories and legend about people and places. Children can get more interested and remember the staff easier. We went to Paris a few years ago and my younger daughter still remembers the story about Maria-Antoinette, how she lived and how she was decapitated.
  • Prepare enough games and activities for the driving part of the trip. Children get easily bored and when you drive for a few hours, they get annoyed and start to fight. Also make enough rest-stops.
  • Limit the visits to the museums and (especially) churches to the minimum. Find theme parks (like Pinnochio museum in Collodi) or museums with interactive exhibits, so the children can touch, try, make things do something…
  • Plan enough time for rest and play (my daughters are 9 and 12 and they enjoyed the children playgrounds as much as would smaller kids, and when there was none around, they played catching).
  • Always have at hand enough to eat and drink, otherwise you can spend a fortune at every ice-cream parlor, market or a shop.
  • I give the children some money (like 10 or 15 EUR) so they can buy souvenirs or postcards or whatever they wish, so they don’t drive me crazy begging for all kinds of staff they see at the stands (which are plenty around the sights). They can also bring their own saved money, if they want.
  • With older children you can prepare budget for the trip and let them journal all the expenses during the trip, divided into categories (food, drinks, tickets, hotels, gas…). We did it usually at the end of the day, remembering where we was and writing the numbers down. The children then summed up the amounts for the day and for the trip so far.

4 little piggybanks

Posted by Alenka  in Money No Comments »
4 little piggybanks

When teaching children about money, it is one of the priorities to teach them how to allocate the money that they get. It can be the money they found on the street, money they get from parents, grandparents and aunts or money earned for small services for others -it is important to stick to the agreed rules.

The common advice is to get them 3 or 4 piggybanks to easily divide the money. But first you have to agree on the percentages to give to each cause. Easy rule of the thumb is 30%-30%-30%-10% (or one third if you have 3 piggybanks). I prefer going for the four, because I found out that my children were confused when they have money for savings and investments together. They don’t understand very clearly what investments are and why would they need savings, when they have parents to provide them for everything:) Or perhaps decide on the amounts as sometimes it is difficult to divide the money (or you will end up collecting little coins just to get the amounts right). For example: at first I gave my daugter 15 EUR allowance, but when dividing, it was really annoying searching for quarters, so I decided to increase her allowance (for educational purposes) to 17 EUR, so she can divide her money to 5-5-5-2 EUR to each piggybank.

Encourage the child to allocate his/her money to

  1. savings (for something bigger – like PSP, computer, bike)
  2. investments (to find later on somthing that money will work for them)
  3. charity/donations
  4. spending

Of course, you should not stick to this piggybanks as an only mean of holding money. As soon there is some money in the piggybanks, discuss different money and investing options with your child. Go to the bank and open an investing account or go get them a saving account. Help them give the money to the charities, not only physically but perhaps you can wire some money accross the world.

I made my children little booklets to track all the transactions they made with the money. I even pay them the interests on the amount they are saving (until we take the money to the bank).

Use every opportunity you can to teach your child about money, how you get it, what you can use it for, how it is handled in the banks, stores…

The Online Self Improvement and Self Help Encyclopedia SelfGrowth.com is the most complete FREE guide to information about Personal Growth on the Internet.
Meet TappyBear Here