We talked to our kids about money

3 thoughts on “We talked to our kids about money”

  1. I don’t know where I read this, but I have been doing the following with our son since he turned 4:

    He gets pocket money (‘allowance’) equivalent to his age in pounds.

    Of this money, one tenth is for charity. The rest is divided into three – one third goes in his purse for him to spend on anything he wants. One third goes in a piggy bank for saving up for a bigger toy (usually Lego!) and the remaining third goes into long term savings in the bank – deposit for a car type of thing!

    He gets the idea of saving up for what he wants. I no longer get nagged to buy stuff for him – if he wants it, he can buy it if he has the money. And he loves the independence having his purse with him gives him.

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    1. I love this idea, and especially that you distinguish between short term and long term savings. I had grappled with how to teach our kids about savings, and that we don’t just save for a specific item, but that it’s always smart to have money in the bank for emergencies, or as you mentioned, for a large years-from-now purchase like a car. Thank you so much for sharing your strategy – I think we are going to adopt this in our family as well.

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      1. It wasn’t my idea originally, but I am glad it was helpful to you! Now I just need to remember to get the right change in my purse (wallet) every Saturday…

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