Kids spending money.... what do you do?

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farmers_daughter
farmers_daughter Posts: 1,632 Member
in Chit-Chat
Question of the day.

Kids have money in their piggy bank, you encourage them to save it for something really special.... and they want to take a small portion out and spend it on what you believe to be junk, just another toy you will have to pick up.:grumble:

It is their money that they've earned, birthdays, holidays, chores etc..... :wink:

What say you?
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Replies

  • pastryari
    pastryari Posts: 8,646 Member
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    Question of the day.

    Kids have money in their piggy bank, you encourage them to save it for something really special.... and they want to take a small portion out and spend it on what you believe to be junk, just another toy you will have to pick up.:grumble:

    It is their money that they've earned, birthdays, holidays, chores etc..... :wink:

    What say you?

    It's "their" (I use this term loosely, as obviously the money came from you guys as the parents) money that they saved. What they think is special might not be your idea of special. Why not?
  • MyOwnSunshine
    MyOwnSunshine Posts: 1,312 Member
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    I mostly let my daughter buy what she wants with her money. She gets occasional money from grandparents ($5 or $10), money from the tooth fairy ($5) and a $5 allowance most weeks.

    I believe that it's good to help them plan what they want to buy. I'll explain that she can buy some junky toy for $5 or save her money for something she really wants. She does both, depending on if there's something she really wants that I won't buy.

    Most really big items (3DS, bikes, etc) are Christmas or birthday gifts.

    My opinion is that it's good to let them make both good and bad decisions, and to let them experience what it feels like to waste their money on junk that breaks or gets used up in a matter of days, as well as to experience the pride of saving their money and buying something big. They learn more by actually experiencing disappointment than listening to you preach about it, and maybe that junk really is what they want to use their money on at the time.
  • Behxo
    Behxo Posts: 1,190 Member
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    Whatever money I got from birthdays, holidays etc my parents stored away into my savings. The only money I got to spend as a child was money I got from doing chores and honestly I couldn't be more thankful for it.
  • Iron_Lotus
    Iron_Lotus Posts: 2,295 Member
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    i ask them if they are sure that's what they want to buy or if there is something they want that costs more that they could save up for. if they really want it they spend it. I teach my kids the value of money all the time. I would like them to enjoy the little bit they get before the real world kicks in and those days set sail.
  • walleyclan1
    walleyclan1 Posts: 2,784 Member
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    I like mine spend 1/3 of piggy bank money on whatever (except drugs, strippers, or weapons), she saves 1/3 for a big dream item (dollhouse currently) and twice a year she chooses something charitable to do with the last 1/3.
  • TyTy76
    TyTy76 Posts: 1,761 Member
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    I say quit being the mean mom
  • LuckyLeprechaun
    LuckyLeprechaun Posts: 6,296 Member
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    My opinion is that it's good to let them make both good and bad decisions, and to let them experience what it feels like to waste their money on junk that breaks or gets used up in a matter of days, as well as to experience the pride of saving their money and buying something big. They learn more by actually experiencing disappointment than listening to you preach about it, and maybe that junk really is what they want to use their money on at the time.

    I agree.

    I think it's REALLY important to allow your kids to exercise their decision making muscles. Parents who want to avoid any negative outcomes or emotions for their kids at all costs are forgetting the value of a lesson learned "the hard way".

    Is it "their" money? Then they should get to spend it however they see fit. Otherwise, you aren't really letting them learn much about money=choices.
  • justlistening
    justlistening Posts: 249 Member
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    I would suggest to them that a percentage goes towards savings, a 'family tax' percent to family events, and a percent for their complete discretion. I heard of the 'family tax' idea somewhere where the kid gets to treat the family to something (e.g. pizza, amusement park ) that they choose. It is just nice to have them give back to the family too and they get to learn about the dreaded taxes!
  • likitisplit
    likitisplit Posts: 9,420 Member
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    http://www.msgen.com/assembled/money_savvy_pig.html
  • megsi474
    megsi474 Posts: 370 Member
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    We do one to spend, one to save, one to give. So their spending money is just that, they have a portion they keep saved and another that they donate to whatever charity they'd like.
  • Wonderwoman2677
    Wonderwoman2677 Posts: 434 Member
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    Encourage them to save, but if it's theirs, then let them decide... otherwise what's the point? They will either be happy or be sad that's gone. That's life right? Learning to make good decisions is the point, isn't it?
  • Wonderwoman2677
    Wonderwoman2677 Posts: 434 Member
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    The family tax idea is interesting...
  • SirBonerFart
    SirBonerFart Posts: 1,185 Member
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    The family tax idea is interesting...

    you'd tax your own crotch fruit?
  • _chiaroscuro
    _chiaroscuro Posts: 1,340 Member
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    I let my 6yr old daughter spend her money on things that are important to her, even if it's just more bric-a-brac to me. Those things are treasures, and the days of plastic pearls and strawberry-scented erasers are fleeting. Excuse me, I have something in my eye suddenly...:cry:

    ANYway, rather than emptying the piggy bank, we ask her to adhere to a policy of "spend some, save some, give some". So far we haven't had to make that a rule, and she's done a good job of portioning out her money appropriately.
  • _chiaroscuro
    _chiaroscuro Posts: 1,340 Member
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    The family tax idea is interesting...

    you'd tax your own crotch fruit?

    Uh, hello? Crotch DROPPINGS is the term. My gawd who raised you?!?
  • staplebug
    staplebug Posts: 189
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    Eventually, they'll want to buy something expensive that they have to save up a couple months' allowance for and they'll learn to discipline themselves if they want it bad enough. I also really appreciate what my parents did for me in teaching me how to manage money: they would sit me down when it was time to distribute allowance and show me that they put 50% of it in a savings account that we didn't touch, then give me the rest to spend. When I went to college, I had a chunk of change to help me pay for housing from that savings account.
  • dennik15
    dennik15 Posts: 97 Member
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    I like mine spend 1/3 of piggy bank money on whatever (except drugs, strippers, or weapons), she saves 1/3 for a big dream item (dollhouse currently) and twice a year she chooses something charitable to do with the last 1/3.

    I like that you're encouraging your child(ren) to donate to charity, but I'm curious about the 1/3 split you've come up with. Do you donate 1/3 of your income? If not, why the difference? I'm genuinely curious...this isn't intended to be snarky in any way. I try to get my kids involved in charity by donating their old toys, clothes, and the like.

    OP, we generally let our kids spend their piggy bank money on whatever strikes their fancy at the moment. I have one who spends it as he gets it and one who saves and saves until he can afford what he really wants. I will add that what is in their bank isn't everything they get, we always put a portion into their college account.
  • danger_kitteh
    danger_kitteh Posts: 301 Member
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    We follow a breakdown of the piggy bank. He's got just a regular old bank and every few months we take the contents to the bank to cash in**.

    Savings, Spend, Donate, Invest - 25% of whatever the total is for each part. We match what he puts into "invest" (his education fund). He chooses usually most months his donation part to go to the humane society or other rescue shelters in our area. Christmas last year he chose to donate his Nov/Dec portion to a family in need.

    As for what he chooses to spend his "spending" money on, we stress the importance on it being something that will last but if it's something junky, I don't fuss too much because it is HIS spending money. He usually saves it up for a big LEGO set or a trip to the local kidfun midway type places.

    He's almost 7 and we've been following this program (with him) since he was 2. Money before that was gifted to him was split equally between savings/investing.


    **
    (he does get a weekly allowance of $0-5 if he completes his chore chart every day)
  • pbrahan
    pbrahan Posts: 107 Member
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    I'm a Dave Ramsey fanatic, so...
    He always says kids should "Give a little, save a little, spend a little" - not just kids, us too!
    I say as long as they're saving some, what they blow a little on isn't important.
    I will say, we put our 16 year old on the Dave Ramsey cash envelope system the minute she started to drive. We funded one tank of gas a month (we figured we'd pay her gas to and from school) and gave her a reasonable amount of money for clothing. She had to fund the "eating out", "entertainment" and "Gifts to others" envelopes herself. If she chose to move cash from her clothing envelope over to her "eating out" envelope, then that was just less money she got to spend on clothes. We never gave her extra and she learned quickly how to budget and look for sales. She also worked hard and has had babysitting jobs as well as worked at a snow cone stand. Also, when she had a fender bender, she had to work to pay for the repairs. I drove her to the auto body shop at the end of the summer and watched her put over $1000 in that man's hand that she'd earned.
    The lesson she learned? Save in an emergency fund. Spend some. You and only you are responsible for your mistakes. Gifts to others from you should actually be from you (and hand made gifts are most often the most cherished). She turned 21 today and if I told you what she has in her savings account, you'd be shocked. It works.
  • mister_universe
    mister_universe Posts: 6,664 Member
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    One of the biggest lessons my oldest son learned was from the day he finally bought the coveted plastic frogger game he craved so desperately. He was in a Frogger phase. The toy was very poorly designed, as the controls only would work for the biggest of adult hands, but was marketed to children. Anyway, once he spent $12 on it, he finally realized what we had been telling him for weeks.

    As a result of that and several other experiences, he is turning into a very trustworthy and planning-minded young adult. He recently saved his first three paychecks, and touched barely a cent of them before buying a laptop that he had meticulously researched. He loves his new purchase, has no regrets, and naturally got a great deal on it.

    They need the good and bad experiences, both. Shielding them from everything is bad, but don't be afraid to give them limits or put your foot down, either. You are the parent, after all.

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