They just won't save...

[accida]

<r><FONT font="Verdana"><s></s>What kinds of trouble have you had convincing kids about financial decisions. It’s like if they’re not taking business, saving doesn’t matter to them. I guess spending might be better for the economy, but not for my wallet Last month alone I got charged 25 bucks for directory assistance. Why don’t they just send a guy to take my change jar while they’re at it?! <e></e></FONT><br/>
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[musicmom]

Oh wow. I haven't even though that far. I guess I'll just get the home phone shut off if it gets that bad. I am teaching mine the value of a dollar now because right now is when they are learning about money.
But you are very right, times have changed and these kids are spoiled because of us. It's our fault and we now have to undo what we created.
Giving them everything when they were little only made them spoiled brats. I'm guilty.
One lesson at a time is all you can do. But I'd start young for sure.
Good post.

 

[Trina]

We have been basically following the advice given in this article.
http://www.bankrate.com/brm/news/pf/20070206_allowance_child_age_a1.asp[/URL]

So for it has worked very nicely for DS (11). He is a saver and does not like to spend his money. If/when he does it is well researched and thought out. He now has over $400 in his wallet. Definitely time to open up a savings account for him. He has informed us that he would like to start saving for a car <I>now, </I>so that by the time he's old enough to drive he'll be able to afford one. LOL!

DD (9) is a different story. She's learning, but it's taking longer with her. She tends to spend her money almost as soon as she gets it, but is now starting to save for special things.

Generally we don't buy things for our kids, other than clothes and necessities, unless for their birthday or Christmas. We were guilty of buying them stuff they wanted just for the heck of it when they were younger, but quickly realized the downfalls and changed our ways. If they ask for a video game, for example, we'll say, "Put it on your birthday/Christmas wish list or save your allowance for it." End of story. They really do appreciate and care for their things MUCH better if they use their own money to buy them.

 

[Amber]

Cameron is very good at saving his money. He's currently saving for some game he wants. He's got $21, so far.

 

[TammyZed]

We have been basically following the advice given in this article.
http://www.bankrate.com/brm/news/pf/20070206_allowance_child_age_a1.asp[/URL]

That's a great link. I wish I knew some of that information when my kids were a lot younger!

My daughter is the more conservative one when it comes to money. She saves her allowance and when she does spend, she spends wisely. We tried early on to show her the value of a dollar by giving her a reasonable allowance and encouraging her to save for bigger items instead of buying things she's only going to enjoy for a short while.

My son, on the other hand, thinks nothing of spending over a hundred dollars on a single pair of jeans. Or, on one occasion, $130 for a <I>tee shirt</I> that didn't even cover his chest. Ugh.

 

[Shari Nielsen]

Thanks for that link!!! I recently implemented a chore/allowance/savings program/etc. w/ my 7 and 6 yr olds. How differently they handle it is VERY interesting to watch!

The link confirmed some of what I already thought and gave me some new ideas and things to think about.

 

[einzweibel]

&lt;r&gt;[FONT=&amp;quot]&lt;FONT font="Verdana"&gt;&lt;s&gt;<FONT font="Verdana">&lt;/s&gt;Oh yes I’ve had problems. With their level of income (read: zero to nil) you’d think they’d be more inclined to save, but noooooo… the best you can do is insist they do things more cheaply. Re: your directory assistance problem, have you heard of the new voip-based options? 1800Free411 is a useful little robot, it has residential and business listings. All you have to do is listen to a short ad. I think they do directions also.&lt;br/&gt;
&lt;br/&gt;
But I caution you against poisoning their thoughts about spending money to buy things they like. Kids should make financial decisions with an eye to the future, but not let that sort of thing run their lives. I've heard stories about kids in their tweens already saving up for businesses they want to start after college. All well and good (and surprisingly foresighted), but you have to wonder if they're actually having any fun anymore.&lt;br/&gt;
&lt;e&gt;&lt;/e&gt;&lt;/FONT&gt;[/FONT]&lt;/r&gt;

 

[AnKsMommy]

Hmmm, I hope that I can get myself in shape with finance stuff before my daughters get older. We're not too bad off, but we could do better too.

My parents were pretty good with me in showing me how to save, but sometimes I would just blow it because they were so hard core on me saving and it seemed to never amount to anything that seemed important to me (when I was 12 of course). So I think that while we should teach our kids to save, we should show them that they can still buy things within limits and still have money left over to put towards something better.

 

[Trina]

I agree, Ali. I think it's important to allow kids to spend their own money as they choose. Within reason, of course. Making poor financial decisions as a child results in small consequences, as opposed to doing so as an adult. As a child I remember blowing all my money on candy, and then regretting it when the candy was gone. It was a light bulb moment. "Oh, I could have bought a new radio or a pair of rollerskates instead! " I thought twice about how I spent money from then on.

DH was brought up differently in this department. He got an allowance, but was not allowed to keep it or spend it as he chose. When he began working as a teen he was required to turn all his paychecks over to his parents. They strictly managed his money. When he finally left the nest and went away to college he went nuts with spending and got into trouble with credit card debt. Thankfully, he had learned his lesson and got back on track by the time we got married, but he wishes he never got into that rut in the first place. I think if he was allowed to manage his money and make foolish decisions and learn from those mistakes as child, he wouldn't have.

 

[Amber]

I thought about this thread a bit last night. That, and Cameron was after me about how much he's saved up.

My parents didn't teach us much about saving. They told us we should, but they never really stressed how important it is to budget your money. So, for the 2 years I was out of the house before I got married, I ran up debt.

I think this is huge in our world. I think this is why so many people are in debt, because parents dont take the time out to stress how important it really is.

 

[Kim]

I thought about this thread a bit last night. That, and Cameron was after me about how much he's saved up.

My parents didn't teach us much about saving. They told us we should, but they never really stressed how important it is to budget your money. So, for the 2 years I was out of the house before I got married, I ran up debt.

I think this is huge in our world. I think this is why so many people are in debt, because parents dont take the time out to stress how important it really is.

Me too, and Mike. Neither of us were careful with money until it was too late. I wish our parents would have taught us better how to handle money, and how credit can REALLY affect you, we are still trying to improve our credit scores. We hope to teach Hannah better.

 

[aliinnc]

We found a bank that would let us open accounts in our kids names. Now each one has a savings account and a ATM card.

Best of all, their allowances are direct deposited from DH's pay. Totally painless for us. Usually we forgot to give them the money before - then no one would remember how much we owed them.

You wouldn't believe how reluctant they are to take money out of those accounts!