A great article for parents with young children. And such an important issue -- at what age do you start teaching your children about money. At age 3 1/2 my daughter told me that I didn't need money to buy her the toy that she wanted since I had my "card"! Meaning my debit card.

5 money lessons for preschoolers - MSN Money

Thanks for the article, DS who is also 3 1/2 has been asking about buying things with his credit cards. When I tell him we can't afford something he says "Mommy, you've got money, it's in your wallet, we can afford it!"

__________________
Angie
Married to my best friend 9.99
Mother since 4.04 to "Bobo" and his "baby" 9.06

Great Article! I like reading those articles. My two older daughters have been getting allowance for three years now (7 & 6). My family has a long line of people who don't have a clue of what to do with money and it took me 2 1/2 years to master the word budget! So I wanted to be sure that my children didn't have that problem.

A few years ago they began earning money by helping me around the house. They earned it slow but they earned it. When they filled up their banks, they each got to go with me on a trip to the bank where we opened an account. The deal was that they had to give 10% of the whole to church, then they had to take 50% of what was left and put it in their bank accounts and the rest they could do with whatever they chose. It was great opprotunity to take them to the store and find out what they wanted and teach them to save until they had enough money. (We avoid the dollar store on these trips!)

After two years of that, they got the idea and increased in how much they were allowed to make. Now, we don't buy toys for them with the exception of birthdays and christmas, they need to buy what they want. I noticed quite a change in the "Mommy please I got to have it" as well as how well they take care of these toys they had to save for 6 weeks to buy.

Now they have chores they do during the week for no pay because they are apart of the house, however on Saturday when I do "deep cleaning" they have the opprotunity to earn up to $5 each if they wanted to. (normally they earn around $2 but their getting better!)

It helps me keep the house clean, they are learning about money and saving and I have lots less headaches in the store!!!!

__________________
If it wasn't on a clearance rack, it's not in my house!

Thanks for the article. I don't give an allowance but I do have a rewards chart from which she earns money. I give her money at the store to pay for things sometimes so she doesn't see me using the debit card all the time. I often explain to her that Daddy goes to work to earn money so we can buy things and pay for our house. I tell her we cannot buy every toy she sees because they cost money and we only have a certain amount of money to spend on toys. She understands the savings in buying things from a yard sale opposed to the store. She will tell her Dad that we bought something for a $1 at the yard sale and it costs a lot more at the real store.

__________________

That is a great article and such an important topic!!!

mybbygrls, what chores do you girls do without getting paid and what chores do they get paid for... do they have a chart so they know what they can do and how much they'll get paid??? I'm very interested in knowing what you came up with - I've been thinking about it for a while, but don't have anything set in stone yet!

This sounds a lot like what I want to do! My boys are 4, 2 & 3 months! I LOVE Dave Ramsey and he says to pay them for chores! My sister had been doing this with her girls though and they started taking the attitude that they got paid for everything! She'd ask them to help and they'd ask "How much will I get for this...?" Do your girls do this mybbygrls??

Plus, what should I do with the amount my boys already have in banks??? They've been collecting money for a while now - just out of our pockets, etc! My boys have about 4 banks each (gifts, and from me) and probably have 2 each FULL! Is this spending money? Or should I take it out and have them donate a portion - might be a good time with angel tree time, etc! Or should we combine it all for a group outing or gift or something??? Any ideas??? I've been planning on depositing money in their accounts (once I set them up) for birthdays and Christmas, but does that money only go for a car or college???

I need to get started for my 4 year old! He helps me with chores now as it is so I need to start placing a value to them, or something! Any advice from ANYONE would be much appreciated!!!

Thanks!

__________________
Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

I have a savings account for my girls through ING Direct. In order to setup minor accounts you need to set an account up for yourself and then call to set up the kids accounts. They are earning over 4% on their savings. There are lots of transferring options. We put all of the money they receive as gifts into these accounts.

We only do $50 each automatically transferred each month into their 529 college savings. If one of them doesn't go to school, they will get the money in savings but not the money in 529. The other student will be able to use the unused portion. We will push for college as much as possible but you never know.

__________________

4% that's pretty good for a savings account! Do they have full access to the money? When they get older can they pull out the cash and go blow it? Or do they need your signiture or something? Are you going to decide where that money is spent, like on a car or something?? Or is it there's to do with what they please??

Oh, and on the 529, you said "The other student will be able to use the unused portion." Does this mean they can use the 529 money set up in the other child's name??? I would think that money is only usable by the child who's name is on the account! What if neither one goes to college - is the money then just gone???

Thanks!!

__________________
Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13