When/how did you start teaching your child about personal finance?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
FriedFire
Posts: 72
Joined: Tue Nov 07, 2017 7:33 pm

When/how did you start teaching your child about personal finance?

Post by FriedFire » Fri Apr 13, 2018 9:15 am

My son is 4 years old and I would love to teach him good financial habits that my parents didn’t teach me.

I was hoping to get the collective wisdom on:
1- when did you start with your children? What’s a good age to start?
2- how did you start? What we’re some things you did that we’re effective, fun and practical?
3- what reading resources did you find useful?

TIA

k3vb0t
Posts: 374
Joined: Mon Jun 02, 2014 4:42 pm

Re: When/how did you start teaching your child about personal finance?

Post by k3vb0t » Fri Apr 13, 2018 9:23 am

My son is 4 as well.

He wanted a Paw Patrol watch. We picked one out, noted the price, and offered up jobs he could do around the house/yard to earn money toward it. We printed out a piece of paper with a box with 20 rows on it. After every job he got to color in the number of rows equally the pay ($1/row) so he could see his progress.

He got into it "What else can I do?!"

Besides dramatically overpaying for simple tasks we plan to continue this in an effort to equate work = pay, saving up for something in the future, things cost money, etc. As he gets older we'll segment some of it off into a savings account, and so on.

I don't have any resources to share from a reading standpoint, so I'll be watching this thread for pointers.

User avatar
Jimbo9911
Posts: 71
Joined: Tue May 17, 2016 3:20 pm
Location: Mississippi

Re: When/how did you start teaching your child about personal finance?

Post by Jimbo9911 » Fri Apr 13, 2018 9:41 am

My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim

winterfan
Posts: 133
Joined: Mon Jan 05, 2015 11:06 am

Re: When/how did you start teaching your child about personal finance?

Post by winterfan » Fri Apr 13, 2018 9:42 am

Three years ago, in kindergarten, I started giving my kid an allowance. I started it primarily to stop her from asking me for stuff at the store. If she wants something, I'll say that she can spend her own money. I'm on the fence about my strategy though. She stopped asking for stuff, but now she hates spending any money. She saves all her gift money and allowance. I had to start an investment account for her because I felt she had too much money sitting in a savings account earning nothing. We've also told her than anything she puts in her investment account will get matched by mom and dad.

If she wants something "big" (last year it was a fitness watch), I tell her she can spend her money now, or wait until Christmas. She chooses to wait. I guess she's got the delayed gratification thing down, so I think that's a good lesson. I think when she is 12 or so, I will let her handle her own clothing budget. I will also add that we are pretty open about how much things cost in our family and how we prioritize our money. I think it works with her personality. YMMV.

mariezzz
Posts: 847
Joined: Mon Oct 02, 2017 11:02 pm

Re: When/how did you start teaching your child about personal finance?

Post by mariezzz » Fri Apr 13, 2018 10:56 pm

Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
I remember in 4th grade being taught how to fill out a check. We learned all sorts of practical things that have been dropped from the curriculum because the focus is all on standardized tests.

My parents from a very young age also offered us the opportunity to earn money by doing extra things around the house.

At age 11, I had my own business . When we asked when the girl across the street got more presents than we did from Santa, my mom pointed out that while Santa brought the presents, the parents had to pay the bill. We understood bills from a very young age.

We always had food & a roof over our head, but that was because our parents were very responsible financially (and we helped out in grandparents' huge garden & on farm, which supplied about 25% of our food). Most repairs to cars, appliances & other things around the house were done by them - they didn't have a choice.

They modeled a life of financial responsibility which all their kids continue; most of us are pretty good DIYers, too. The one thing we didn't get was much information about investing - there wasn't much money for that, although they had some investments in utilities (which I guess at the time had a decent, fairly safe return - or else they were lucky).

User avatar
ebotrd
Posts: 183
Joined: Thu Jul 28, 2011 12:55 pm

Re: When/how did you start teaching your child about personal finance?

Post by ebotrd » Fri Apr 13, 2018 11:53 pm

I noticed our church was having a Ramsey-esque Smart Kids Smart Money seminar. We couldn't attend so I searched around to see if I could find some of the materials. Found the Ramseys giving it themselves on youtube here https://www.youtube.com/watch?v=VvNZH6mQQvY
So I watched, and pulled out some excerpts for our kids to watch.
Fidelity https://www.fidelity.com/viewpoints/per ... illennials
Schwab https://intelligent.schwab.com/public/i ... sting.html
and USAA https://www.usaa.com/inet/wc/adv_advice ... irect=true
...also have some decent materials.
When something is important enough, you do it even if the odds are not in your favor. -- E. Musk.

User avatar
wander
Posts: 2788
Joined: Sat Oct 04, 2008 9:10 am

Re: When/how did you start teaching your child about personal finance?

Post by wander » Sat Apr 14, 2018 5:25 am

My parents never taught us about personal finance, but they were always living within their mean and made good decision about their money.

J295
Posts: 2166
Joined: Sun Jan 01, 2012 11:40 pm

Re: When/how did you start teaching your child about personal finance?

Post by J295 » Sat Apr 14, 2018 6:20 am

Great parenting OP!

Until middle school we taught by example.

Starting in middle school and through high school every 6 months they got a stipend, which they had to use to purchase just about anything they might need without further contribution from us. So, if they wanted to go all out for a school dance, get expensive clothes, buy games, etc. they could, but that meant less $$ in their bank account. Typically they choose the frugal route.

In high school they also got a credit card and a checking account so they could learn to manage them, and make mistakes in a "safe" environment. They also started Roth IRAs (for which we provided a matching gift). They all worked some, but not very much due to school activities which we deemed more important (it worked out fine, they have a "gritty" gene and are all very industrious as adults).

Good luck, and good job!

angelescrest
Posts: 1015
Joined: Tue May 27, 2008 10:48 am
Location: Texas

Re: When/how did you start teaching your child about personal finance?

Post by angelescrest » Sat Apr 14, 2018 6:22 am

FriedFire wrote:
Fri Apr 13, 2018 9:15 am
My son is 4 years old and I would love to teach him good financial habits that my parents didn’t teach me.

I was hoping to get the collective wisdom on:
1- when did you start with your children? What’s a good age to start?
2- how did you start? What we’re some things you did that we’re effective, fun and practical?
3- what reading resources did you find useful?

TIA
Hi FriedFire,
I started my kids at age 3. They get money for doing chores every week. I make them divide up everything they earn into four separate jars I bought for them at Walmart. One is for taxes, one is for charity, one is for savings, and the last is for discretionary. My friend’s eyes popped when he realized my 3 year old knew what discretionary income meant and he didn’t. I realize four jars is complicated, but my kids never had trouble understanding the difference, and the point is that I have been able to talk to them about how to think through each category. They love their jars and enjoy opening and closing them, and it’s a ritual they really like.

They know that some money is for the government, and it’s pretty hilarious to hear the little kiddos complaining about the condition of the roads in front of our house and how they want their government to spend their tax dollars on that stretch of road. It’s in awful shape and it affects how they can play. They also use the local library and they know their tax money goes to that. Of course, they don’t know yet that I’m actually the tax collector.

They know that savings is there for their retirement, not to save up for big purchases, which for me is the most important lesson of all. They know one day there will be no pension and maybe no support elsewhere, and that they need money for when they are old like grandma and grandpa. They regularly take their money and donate it to what matters to them. I couldn’t have been more proud than when they took all their discretionary money and donated it to the WWF for animals they cared about, not at our urging. Maybe not a good financial choice, but I’m glad all this money talk hasn’t made them selfish.

A few times my youngest at age 3 would do work around the house, and then come to me and in a loud voice say “I worked really hard picking up my room, you need to give me 2 dollars! No 3 dollars!” While holding up her fingers to see if she’s got it right. It takes all my self control not to burst into laughter and try to use it as a negotiating moment as I envision her having that conversation with a future boss.

I struggle sometimes with letting them choose what to do with their discretionary money. I need to let them make mistakes, but at the moment I let them know (they are really young) that I get to approve their purchases. I’ve noticed both of them treat money very differently, which is pretty interesting. The first thing my oldest saved up for was like $45, and it took her ages to save for that. When we bought it, it was on sale for $30 and you should have seen the look on her three or four year old face. Sadly, since then, she doesn’t practice the same level of delayed gratification. I also notice what they want to buy changes almost daily. That bothers me, but they are little kids after all.

One thing my wife and I disagree with are the toy catalogues that come to the house. She thinks it’s good for them to dream over these catalogues, and I think they’re terrible. She doesn’t like the fact that I’ve gotten the kids to talk about how expensive many of the items are, how poorly made many of them are, and why they should never spend their money in it. She thinks I’m robbing them of their innocence, and maybe she’s right! :twisted:

Confession: I never learned to balance my checkbook, and with online banking see no reason to teach my kids.

Hillview
Posts: 366
Joined: Fri Feb 02, 2018 7:27 am

Re: When/how did you start teaching your child about personal finance?

Post by Hillview » Sat Apr 14, 2018 6:47 am

I grew up financially illiterate. My parents used credit cards to pay for my sister's college. My father died with only debt to his name. My mom lives off of SS and what I and my sister help her with.

I have boys ages 10 and 12.
- When they were 7 they started to get an allowance (their age in dollars per week so now the 10 year old gets $10 a week). They can do whatever they want with it (with some exceptions like not $10 worth of candy). This has been a major factor in understanding money. The 12 year old is a saver --- always has been. The 10 year old is hanging in there -- buying baseball cards and then wishing he had more saved. After several years he is now carrying a balance of $700 so overall he is doing well. He has not yet decided to invest it but he will get there.
- When my 12 year old was 9 he asked me to open an etrade account and he purchased a share or 2 of apple, irobot, shakeshack and a company that did solar panels that went out of business (his etrade account has grown 25% in 3 years). He recently purchased some $1500 of VANGUARD S&P 500 INDEX ETF (VOO).
- We talk a lot about finance at the dinner table (and other times) and we celebrate financial milestones (getting a deal done at work, paying off the car or the house etc). We also talk about trade offs of budget decisions (would you rather have one big/expensive vacation or 2 smaller ones?).
- My 12 year old asked to see our YNAB budget and I walked him through it. He knows all of our bills and my salary.

Ron Lieber's book is a good read
https://www.amazon.com/Opposite-Spoiled ... B00KAC65PW
He talks about bringing home his salary in $1 bills and then dividing it up into the categories of where it all goes. Good stuff.

Goinganontoday
Posts: 60
Joined: Sat Jan 14, 2017 4:58 pm

Re: When/how did you start teaching your child about personal finance?

Post by Goinganontoday » Sat Apr 14, 2018 7:05 am

Our kids are 3 and 7. When it comes up, we will mention the benefits of saving for something that we want and whether something is in the budget. The 7 year old has certain chores that he is expected to do as part of the family and then extra chores that he can do to earn money. He knows that we will buy him anything he needs as well as books and legos (within reason), but we expect him to use his money for toys and the like. So far, he has found that he doesn’t like to spend his money very much and would rather save it for something he really wants.

We also take them grocery shopping with us so they see prices and hear our conversations about what we’re buying and why. Last time we went, the 7 year old asked if we could buy a particular snack food and the 3 year old immediately responded, “is it on sale?” The 7 year old then said, “no, I guess we’ll wait until next time then.” DH and I were both stunned for a second and then high fived both kids. It was one of those moments when we realized that they were actually paying attention to our financial literacy lessons/modeling.

Dandy
Posts: 6000
Joined: Sun Apr 25, 2010 7:42 pm

Re: When/how did you start teaching your child about personal finance?

Post by Dandy » Sat Apr 14, 2018 7:57 am

1. start with a small allowance - I think I got 25 cents a week (I'm 70). You could tie it to a simple chore depending on age but the idea is his/her understanding of income/earnings. That helps them understand parents have income (so they don't have unlimited money).
2. Have them use a piggy bank or jar to put allowance, birthday money etc in it.
3. Carve out something he/she must save and pay for. e.g. for my 7 year old grandson it is buying Pokeman cards.
4. Explain how you are saving money each month for taking the family on vacation. Just like they are saving for ??
5. On occasion some general discussion about smart buying e.g. why you get gas at this station (less cost), or why you use a coupon, etc. Later if you are buying something for him/her maybe you can go online and show him the same game costs $15 at X store and $12 at Y store. So you are buying it at Y store. Make it quick not a lecture. Wow shopping around can save $$.
6. At an age when he has a decent amount of money in the Jar or piggy bank open a savings account. The best is really a passbook or statement savings at local bank where he can deposit and withdraw and see the activity and interest. When he/she has enough is old enough you can transition to an online bank.
7. let them in on how you make some purchasing decisions e.g. like a car. For example why you bought a used car vs a new one or why you aren't buying a car when Joey's father just bought a new SUV. One of my infamous "lessons" was why on vacation we got the parking lot view vs the ocean view. I said we saved $X per night x 5 nights = a lot of money and I'd rather spend than on nicer dinners or ? then see the ocean - the ocean is right across the road you can see it all day. :happy

As far as investing I think they need to learn the basics of stocks and bonds in school and then you have a level of knowledge to work with. If not, you will be looking at glazed eyes. I just helped them with an IRA when they got their first job - Initially, I invested for them based on their earnings, later matched their contributions and later just gifted them some money with no strings (and they invested it !!). I started them with the STAR fund with a $1000 minimum later with a TD fund. Neither studied any finance in school. So they both have good spending/saving habits but rely on low cost Vanguard options for investing which is, for the most part with these funds, set it and forget it.

User avatar
lthenderson
Posts: 4360
Joined: Tue Feb 21, 2012 12:43 pm
Location: Iowa

Re: When/how did you start teaching your child about personal finance?

Post by lthenderson » Sat Apr 14, 2018 10:04 am

My kids don't get an allowance. Any chores they do are for the good of the family.
Any money received as gifts is put into a savings account.
If they NEED something, we buy it for them. If they WANT something, they wait for a birthday or Christmas.
We discuss the difference between NEEDS and WANTS.

GCD
Posts: 999
Joined: Tue Sep 26, 2017 7:11 pm

Re: When/how did you start teaching your child about personal finance?

Post by GCD » Sat Apr 14, 2018 11:19 am

Started teaching various lessons around 3-4 and increased the complexity as they got older. It gets difficult when you have multiple kids and they learn at different speeds and the speeds don't correlate with their ages. It's obvious to any adult that kids all learn these lessons at their own rate and might deviate on their learning curve by a couple years. The problem comes when the younger picks it up at a quicker pace than the older. I have no concern that both my kids will eventually be fine. But it is a challenge when it's time to provide different scaled rewards and the ages don't correlate to where they are mentally.

Ztx
Posts: 74
Joined: Thu Jul 21, 2016 9:54 pm

Re: When/how did you start teaching your child about personal finance?

Post by Ztx » Sat Apr 14, 2018 11:57 am

Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.

CascadiaSoonish
Posts: 161
Joined: Tue Feb 13, 2018 11:44 am

Re: When/how did you start teaching your child about personal finance?

Post by CascadiaSoonish » Sat Apr 14, 2018 12:08 pm

My boys are 11 and 9. For the past year or so they've had the Money account from Capital One 360. It's marketed to parents of teens but has worked well for our boys. Debit card, online access and ATMs, no fees. Their allowances are transferred in every other week. They've made a couple mistakes (including a good lesson about in-app purchases) but otherwise have been responsible so far with it. And it's easier to manage than cash.

User avatar
Jimbo9911
Posts: 71
Joined: Tue May 17, 2016 3:20 pm
Location: Mississippi

Re: When/how did you start teaching your child about personal finance?

Post by Jimbo9911 » Tue May 01, 2018 12:01 pm

Ztx wrote:
Sat Apr 14, 2018 11:57 am
Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.
Checks may be an outdated tech but, when I go online to pay a bill and get the notice that "there will be a $7.00 convenience fee for using this service".
I am more than happy to mail them a check.

Jim

DarkHelmetII
Posts: 421
Joined: Mon Jul 24, 2017 12:25 pm

Re: When/how did you start teaching your child about personal finance?

Post by DarkHelmetII » Tue May 01, 2018 1:41 pm

My dad opened up IRA for me when I was in college. Because my parents were paying for college (very lucky I know) I would literally just give them all of my checks from various summer internships. With that money my dad helped me put a few thousand into an IRA. Which got me thinking in general about investing as well as Traditional vs. Roth products.

User avatar
Darth Xanadu
Posts: 708
Joined: Sat Jan 27, 2018 1:47 am
Location: Middle Earth

Re: When/how did you start teaching your child about personal finance?

Post by Darth Xanadu » Tue May 01, 2018 1:47 pm

Ztx wrote:
Sat Apr 14, 2018 11:57 am
Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.
Very true. I will certainly write the occasional check, but I honestly don't know what "balance a check book" even means, or how one might go about doing that.
"A courageous teacher, failure is."

Wellfleet
Posts: 540
Joined: Sun Jan 26, 2014 8:18 pm

Re: When/how did you start teaching your child about personal finance?

Post by Wellfleet » Tue May 01, 2018 1:52 pm

Richard Scarry Books, particularly "What Do People Do All Day?" is a great resource.

jlawrence01
Posts: 1563
Joined: Mon Feb 25, 2013 1:34 am
Location: Southern AZ

Re: When/how did you start teaching your child about personal finance?

Post by jlawrence01 » Tue May 01, 2018 1:54 pm

One comment.

You learn a LOT MORE about personal finance by what your parents DO than what they TEACH. Make good decisions and discuss with your children why they cannot have everything that there heart desires.

walkerbait
Posts: 47
Joined: Tue Jan 17, 2017 9:01 pm

Re: When/how did you start teaching your child about personal finance?

Post by walkerbait » Tue May 01, 2018 2:47 pm

Hillview wrote:
Sat Apr 14, 2018 6:47 am
Ron Lieber's book is a good read
https://www.amazon.com/Opposite-Spoiled ... B00KAC65PW
He talks about bringing home his salary in $1 bills and then dividing it up into the categories of where it all goes. Good stuff.
I second this book recommendation. We are just starting out with teaching our kids, but here is what we we’ve been doing for a couple of months now:

1. Each child gets a weekly allowance equal to their age (my children are 8, 5, and 3). I give the younger ones money in denominations that are easy to divide in fourths (My 5 year old gets 4 dollars and 4 quarters, 3 year old gets 4 stacks of 3 quarters, 8 year old gets 8 dollar bills)
2. 50% (half of the beginning amt) goes to “save” which is something they identify that they want to buy but will take more than a week to save for. They can change their mind and buy something else but only after they’ve saved up the amount they decided they would save.
3. 25% (half of what’s left) goes into “give” and they usually give it to the church, but can pick other missional causes if they’d like.
4. 25% (remainder) goes into their “spend” and they can spend it any time, on any thing they want.

Their allowance is not tied to doing chores around the house, as we want the chores to be something they do just for being part of the family. We want them to learn that they will get paid to work, but their allowance is about teaching them to manage money. If they refuse to do their chores, because they don’t care if they get paid, then we end up with them not doing chores AND not learning to manage money — not our end goal.

We do occasionally offer to pay for them to do OUR chores, or extra jobs, but not their regular chores.

As someone pointed out above, what they want changes CONSTANTLY. It’s maddening sometimes, but it’s part of the process — aren’t we often the same way? Just on a different scale.

They make some really bad decisions. I’ve forced myself to give advice and leave it at that. It won’t do any good to control what they do with their money, and the whole point is that I want them to learn to make mistakes when the stakes are low.

We have shifted more of what they want onto their own burden, and will continue to do so as they get older. For example, if they want chewing gum, they have to buy it. A souvenir on a family trip? Up to them to use their own money. This alleviates some of the nagging/begging, and puts us parents less in opposition to our children all the time. We also charge them fees for certain things like if we have to clean up their dishes, clean up their messy room, etc.

I’ve offered creative incentives for them to save their money. For example, if they deposit $10 with me for the week, I’ll pay them $11 back the following week with their allowance (10% interest weekly!). I’ve found that this is no big deal and they’re happy to do it when they aren’t near their “number” for what they’re saving for — but once they are in the buying range, I can’t even get them to delay purchasing with 20% weekly interest! My hope is that over time they learn that delayed gratification is worth it....but none of them are there yet. I’ve also offered to match dollar-for-dollar if they want to deposit it into their child savings account (which they can’t access until they’re “much older”)...but no takers yet.

It’s been interesting to see the stuff they’ve learned just in a couple of months. They talk about money All_the_time now, and ask lots of questions. They are learning what is a good deal versus not, what’s worth spending money on, and that there is no end to the amount of things they could buy.

I’m not sure what the right age is to start this stuff. My 5/8 year olds understand it all and my system has been great for them for learning. The 3 year old (who is almost 4) is still a bit young. This probably varies from child to child, and everyone thinks their child is the smartest, but I think 5 is about the right age for the system we’ve established.

We are consistently revising how we do things (online shopping orders only placed on one particular day of the week, for example, to stem the nagging for us to order stuff all the time), but I will let you guys know in 30 or so years if I’m still around how it all turned out. Ha!

GCD
Posts: 999
Joined: Tue Sep 26, 2017 7:11 pm

Re: When/how did you start teaching your child about personal finance?

Post by GCD » Tue May 01, 2018 4:35 pm

Darth Xanadu wrote:
Tue May 01, 2018 1:47 pm
Ztx wrote:
Sat Apr 14, 2018 11:57 am

That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.
Very true. I will certainly write the occasional check, but I honestly don't know what "balance a check book" even means, or how one might go about doing that.
I don't understand. If you don't write checks because you do everything electronically and use on-line payments, credit cards, etc., then ok. But if you actually have a checkbook and write checks how can you not know about balancing a checkbook?

User avatar
Darth Xanadu
Posts: 708
Joined: Sat Jan 27, 2018 1:47 am
Location: Middle Earth

Re: When/how did you start teaching your child about personal finance?

Post by Darth Xanadu » Tue May 01, 2018 4:58 pm

GCD wrote:
Tue May 01, 2018 4:35 pm

I don't understand. If you don't write checks because you do everything electronically and use on-line payments, credit cards, etc., then ok. But if you actually have a checkbook and write checks how can you not know about balancing a checkbook?
I'm not sure how to answer your question. I write the check, tear it out, and then mail it or hand it over to the person I'm paying. As far as I know, there's nothing left to do. I probably write 0-3 checks per year.

Back to OP's post, I've enjoyed these responses and will likely adopt some of these ideas/approaches in a few years when it will be relevant for my kid.
"A courageous teacher, failure is."

Loik098
Posts: 651
Joined: Mon May 30, 2016 9:29 pm

Re: When/how did you start teaching your child about personal finance?

Post by Loik098 » Tue May 01, 2018 5:07 pm

GCD wrote:
Tue May 01, 2018 4:35 pm
Darth Xanadu wrote:
Tue May 01, 2018 1:47 pm
Ztx wrote:
Sat Apr 14, 2018 11:57 am

That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.
Very true. I will certainly write the occasional check, but I honestly don't know what "balance a check book" even means, or how one might go about doing that.
I don't understand. If you don't write checks because you do everything electronically and use on-line payments, credit cards, etc., then ok. But if you actually have a checkbook and write checks how can you not know about balancing a checkbook?
Checkbooks don't NEED to be balanced in order to write checks from them, just as credit card purchases don't need to be written down and accounted for at the time the card is swiped. In both cases, the only thing one needs to know is that there's money available to cover the expense at the time of purchase or later when the bill comes due. If it's a close call, one can just login online to verify balances first. This online functionality is what has eliminated the need for written math in a book.

In addition, with online budgeting services like Mint, or even by using a budget spreadsheet, etc., one can account for every expense in one place. For me, there's no point in accounting just for the checks portion of my budget in a book somewhere....it's redundant.
Last edited by Loik098 on Tue May 01, 2018 5:10 pm, edited 1 time in total.

User avatar
Smorgasbord
Posts: 422
Joined: Fri Jun 10, 2016 8:12 pm

Re: When/how did you start teaching your child about personal finance?

Post by Smorgasbord » Tue May 01, 2018 5:09 pm

When my son was 2 I started trying to get him to understand the concept of delayed gratification in a manner similar to the Standford Marshmallow Experiment. It's still a work in progress. :D

david
Posts: 188
Joined: Thu Jan 03, 2013 12:39 am

Re: When/how did you start teaching your child about personal finance?

Post by david » Tue May 01, 2018 5:15 pm

Darth Xanadu wrote:
Tue May 01, 2018 1:47 pm
Ztx wrote:
Sat Apr 14, 2018 11:57 am

That's probably because checks are just an outdated tech. I've never balanced a checkbook myself in the past 15 years since everything is available online.
Very true. I will certainly write the occasional check, but I honestly don't know what "balance a check book" even means, or how one might go about doing that.
I don't balance my checkbook. But, the idea is simply that you have a separate accounting than the bank about how much should be in your account, accounting for all checks deposited and written. This will ensure that you have money in the account to pay for any new checks you write so you don't bounce the check or overdraw the account. You can do it with your check register. Since you can see the banks accounting at any time, it's much less useful. But, it still is useful if there are many outstanding and/or high value checks that you have that are outstanding.

david
Posts: 188
Joined: Thu Jan 03, 2013 12:39 am

Re: When/how did you start teaching your child about personal finance?

Post by david » Tue May 01, 2018 5:20 pm

My child is two. The way I teach about personal finance is by saying "no." Hopefully, one day, when he gets to use his own money, is to say "no" to himself.

As he gets older I will share information about how we make decisions about what to buy. That it takes time to make money before we can spend it. And try to instill the value of money.

Older still we can begin discussing investments, etc.

When he's ready to get a first job we can talk about retirement accounts, etc.

But, first things first. Knowing that wants are limitless and what we can have is limited. And that delaying gratification can be beneficial. Mostly this would be done by modeling.

User avatar
cfs
Posts: 4154
Joined: Fri Feb 23, 2007 1:22 am
Location: ~ Mi Propio Camino ~

Re: When/how did you start teaching your child about personal finance?

Post by cfs » Tue May 01, 2018 6:16 pm

Opened Navy Federal Credit Union saving accounts for my kids between the ages of 1 and 5, adding $25 to each account every military payday, they were responsible for keeping track of the balance. They are now adults and still have those accounts active. Good luck y gracias por leer / cfs
~ Member of the Active Retired Force since 2014 ~

southpaw328
Posts: 33
Joined: Wed May 10, 2017 11:33 am
Location: Pasadena, CA

Re: When/how did you start teaching your child about personal finance?

Post by southpaw328 » Tue May 01, 2018 7:31 pm

Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
I have no idea how to balance a check book but I also have absolutely no need for checks. People still use checks?

I know how to create spreadsheets though.

User avatar
Jimbo9911
Posts: 71
Joined: Tue May 17, 2016 3:20 pm
Location: Mississippi

Re: When/how did you start teaching your child about personal finance?

Post by Jimbo9911 » Wed May 02, 2018 3:28 pm

As far as my discussion above about teaching my daughter to balance a check book, this was 26 years ago. There was no such thing as online bill pay nor ACH payments from your bank.
It was a way of teaching her to be responsible with money and be sure she had the money in her account before writing a check.
If someone just writes checks and continues to write checks and never knows how much is in the account since they are not "balancing" it then they will eventually write a "bad" check.

For the folks who mentioned they do not know what balancing a check book means, see below.

http://www.dummies.com/personal-finance ... checkbook/

Jim

TravelforFun
Posts: 1938
Joined: Tue Dec 04, 2012 11:05 pm

Re: When/how did you start teaching your child about personal finance?

Post by TravelforFun » Wed May 02, 2018 7:12 pm

We never taught our kids about finances when they were growing up. They are now adults, two are very responsible with money and are very savvy investors, and one spends every dollar she makes plus more.

To this day (I'm 66), I still don't know how to raise kids

TravelforFun

TravelforFun
Posts: 1938
Joined: Tue Dec 04, 2012 11:05 pm

Re: When/how did you start teaching your child about personal finance?

Post by TravelforFun » Wed May 02, 2018 7:15 pm

southpaw328 wrote:
Tue May 01, 2018 7:31 pm
Jimbo9911 wrote:
Fri Apr 13, 2018 9:41 am
My daughter is 34 now.
We got her a checking account when she was about 7 or so and taught her to use it and to balance her account monthly.
I am amazed when she tells me how many of her acquaintances do not know how to balance a check book, or even how to write a check.
She is a great money manager now and is teaching her 4 year old to do the same.

Jim
I have no idea how to balance a check book but I also have absolutely no need for checks. People still use checks?

I know how to create spreadsheets though.
Why balancing the check book when you can see exactly your balance and where your money goes with a few taps on the phone?

TravelforFun

User avatar
wander
Posts: 2788
Joined: Sat Oct 04, 2008 9:10 am

Re: When/how did you start teaching your child about personal finance?

Post by wander » Wed May 02, 2018 7:22 pm

My parents never taught me about finance, but I grew up well financially. They taught me to focus on education, help them with their business, and do charity.

SQRT
Posts: 1196
Joined: Sat Feb 05, 2011 9:44 am

Re: When/how did you start teaching your child about personal finance?

Post by SQRT » Wed May 02, 2018 7:26 pm

I’m of the opinion that it’s more important to show a good example of financial responsibility, than to “preach” to your child or create little artificial games (which they will game).

I didn’t listen to anything my parents said when I was a kid but I certainly noticed their responsible financial behaviour. My daughter has mentioned a few times how she thinks we are “very good with money”. She is 34 and displays very responsible financial behaviour. I can’t remember ever talking to her about this.

Lead by example.

Post Reply