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I've come to learn that kids really cant learn about the value of money until they start earning their own money. it's easy to spend someone else's moeny, its

I've come to learn that kids really cant learn about the value of money until they start earning their own money. it's easy to spend someone else's moeny, its hard to part with your own once you know how hard it is to earn. So step 1 is to figure out a way to get them earning their own money, either a job or some sort of allowance. We started our kids with a job at age 12, we tried allowances before then but dropped it because it was tied to doing work around the house which we felt they should do anyway.

andrei_says_ 5y ago
> but dropped it because it was tied to doing work around the house which we felt they should do anyway. Thank you for mentioning this. It may be useful for other parents to know - research shows that rewards kill intrinsic motivation, replacing it with extrinsic motivation. When the reward stops, the rewarded behaviors stop, too. If a child likes to draw, for example, rewarding them for drawing will damage their relationship with drawing. The message of rewards is - the thing you’re doing is not worth it unless you get the reward. Praise, conditional approval, attention, otherwise withheld access to activities, are all rewards. Lastly, rewards are also punishments - because withholding a reward is punishment. Punishments and rewards establish a transactional relationship and reduce intimacy, connection and trust. They are all a tool for control. I recommend Alfie Kohn’s Punished by Rewards for a deep dive with a lot of citations showcasing some fascinating studies.
ambrotos 5y ago
Another possibility here is to expose them to the idea of bills too. As a kid, my account balance was easy to manage because it only went down when I swiped my card. Auto paying bills forces you to always keep a healthy account balance. When they are old enough to understand, make sure to tell them about financial tools besides checking accounts. Explaining how they work, and what they should be used for could go a long way.
dr_orpheus 5y ago
> we tried allowances before then but dropped it because it was tied to doing work around the house which we felt they should do anyway Glad you mentioned this one too because this is something I was thinking about too. We tried to strike a balance where the kids don't have a regular allowance for normal around the house chores, but pay them for "projects" that are sort of above and beyond the normal course of chores. This would be things like helping put in a new flower bed, or re-arranging the living room.
jonshariat 5y ago
One thing I've seen some parents do for this is choosing core chores that they have to do because they also live in the house (i.e. tidying, trash, dishes, etc) and then having elective chores that pay (i.e. yard care, mopping the floors, organizing, deep cleaning, etc) I also feel like the 'ol lemonade stand idea is a great lesson. of course it can be anything but something they can make and try and sell.
- jonshariat 5y ago
  Btw it also blows my mind schools ban kids from selling things to other students like packaged snacks and drinks. This is such a great opportunity for kids to learn about money and business!

andrei_says_ 5y ago

> but dropped it because it was tied to doing work around the house which we felt they should do anyway. Thank you for mentioning this. It may be useful for other parents to know - research shows that rewards kill intrinsic motivation, replacing it with extrinsic motivation. When the reward stops, the rewarded behaviors stop, too. If a child likes to draw, for example, rewarding them for drawing will damage their relationship with drawing. The message of rewards is - the thing you’re doing is not worth it unless you get the reward. Praise, conditional approval, attention, otherwise withheld access to activities, are all rewards. Lastly, rewards are also punishments - because withholding a reward is punishment. Punishments and rewards establish a transactional relationship and reduce intimacy, connection and trust. They are all a tool for control. I recommend Alfie Kohn’s Punished by Rewards for a deep dive with a lot of citations showcasing some fascinating studies.

ambrotos 5y ago

Another possibility here is to expose them to the idea of bills too. As a kid, my account balance was easy to manage because it only went down when I swiped my card. Auto paying bills forces you to always keep a healthy account balance. When they are old enough to understand, make sure to tell them about financial tools besides checking accounts. Explaining how they work, and what they should be used for could go a long way.

dr_orpheus 5y ago

> we tried allowances before then but dropped it because it was tied to doing work around the house which we felt they should do anyway Glad you mentioned this one too because this is something I was thinking about too. We tried to strike a balance where the kids don't have a regular allowance for normal around the house chores, but pay them for "projects" that are sort of above and beyond the normal course of chores. This would be things like helping put in a new flower bed, or re-arranging the living room.

jonshariat 5y ago

One thing I've seen some parents do for this is choosing core chores that they have to do because they also live in the house (i.e. tidying, trash, dishes, etc) and then having elective chores that pay (i.e. yard care, mopping the floors, organizing, deep cleaning, etc) I also feel like the 'ol lemonade stand idea is a great lesson. of course it can be anything but something they can make and try and sell.

jonshariat 5y ago
Btw it also blows my mind schools ban kids from selling things to other students like packaged snacks and drinks. This is such a great opportunity for kids to learn about money and business!