SAMPLE STORY 1 "Money is something you EARN."
Toni Graybill
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To submit your story or idea:
- Send an email to kidsandmoney@gmail.com.
- Call 1-270-569-9390 and leave a voicemail.
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SAMPLE STORY 2
I
was tired of being the bad guy. Every trip was the same old thing-- my
kids would ask me to buy them something from every souvenir store
insight. “Pleasssse Dad! Can I have this? I
really, really want it!” they’d say as the held up some plastic toy
that might last until the next day.
I
wanted to teach my kids that we don’t have unlimited money and help
them understand that we can’t buy everything they want, to think
purchases through, and make the best choices possible. I tried to
explain, on many occasions, that we don’t have to be stingy with our
funds, but we should be careful with purchases. No matter how hard I
tried, I got the same reaction… “But Dad, I really, really want it.”
So,on
our vacations, I’d just end up saying no, being the bad guy, and not
teaching them anything. Or worse, I’d say “Maybe later,” when that
wasn’t true. I felt like I was lying to them to avoid saying no.
Often,they
wouldn’t even wait until we got to our destination before asking for
souvenirs. On most of our trips, we take our first break at a town
three hours from our home and browse at a discount bookstore. I’m
always willing to buy my children good books. But they’d often beg me
to buy an expensive comic book based on the latest cartoon trend to
which I’d answer--you guessed it--“No!”
Then
I got a great idea! I’d decide how much to give my children for
spending money and distribute that amount at the beginning of the
trip.I’d let them to choose what to buy and when until the money ran
out.
On
our next trip, I gave each of my three kids $20 and told them it was
all they’d receive for the whole vacation. They were excited and
thankful to have so much money and the power that came with it. They
thought I was an awesome dad!
Three
hours later, we stopped by the discount bookstore. Once again,
my9-year-old son asked me if he could have a small expensive comic
book. I said he could choose what to spend his money on, but once the
$20 was gone, there would be no more. I reminded
him we were only three hours into a four-day trip and left him alone to
consider his options. I felt completely at ease. No more stress from
trying to explain to him why the book may not be a good use of
money,and no more urging him to consider alternatives.
Out of the corner of my eye, I saw him standing there, deep in thought.Finally, he put the book down, walked over to me and said, “Dad, I hate this!” He may not have liked making his own decision, but he learned a powerful lesson that I had been unable, despite my best efforts, to teach him before.
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To submit your story or idea:
- Send an email to kidsandmoney@gmail.com.
- Call 1-270-569-9390 and leave a voicemail.
To be notified when the book is ready or to receive monthly updates with the latest stories, send an email to kidsandmoney@gmail.com with 'monthly update' in the subject line.
I have helped my kids develop the habit of paying themselves first (saving) and donating second, and spending last.
As a financial planner I noticed the biggest habit people lack is taking a portion of what they earn and setting it aside for their future. It is said, "it's not how much money you make that is important, it's what you keep that will make all the difference." I would have to agree. Only about 5% of the people have developed the habit of saving a portion of everything they earn. Interestingly enough, only about 5% of the people have accumulated enough money and can retire to financial independence where they are not reliant upon friends, family or the government. It's not a mere coincidence.
The good news is it's simply a habit and anybody can change or develop a habit (regardless of income) with some practice and setting up the right environments.
So, with each payday our kids will take 10% of their allowance and set it aside in a jar marked "long term savings". This will eventually go to larger milestone purchases or investments like a car, college,starting a business, or retirement. At the end of the month we make a trip to the bank and they deposit that accumulation into their interest bearing accounts. This teaches them that their money can work for them and it's not just about them working to make money.
The next jar is marked "Charity". Each child gets to select a charity or cause of their choice and they take 10% of their earnings and place it in that jar. At the end of the month they make a donation to their charity.
The next jar is marked "mid term savings" this is for liquid access to money for moderate purchases like video games, computer, new skateboard, special trendy attire that they feel they have to have.Hey, if it's that important they can pay for it right ;-) You would be amazed at what kids think they need and then realize they don't really need it when they have to pay for it. They deposit 10% into that jar and let it accumulate for when they want that certain item.
The fourth jar is labeled "quick cash" and up to 70% of their earnings can go into that one. Notice I say up to… Often our kids will have their eye on something they want or get really excited about a charity and they will direct more than the 10% to those. That's a pretty cool feeling as a parent to see your kids start to get it that it's not about what you can get right now with the money but how to save watch it grow and contribute. And, lesson learned that you can always live off a portion of what you earn.
Get 4 jars for each of your kids, label them and help them build a wealth habit of a lifetime.Machen MacDonald
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To submit your story or idea:
- Send an email to kidsandmoney@gmail.com.
- Call 1-270-569-9390 and leave a voicemail.
To be notified when the book is ready or to receive monthly updates with the latest stories, send an email to kidsandmoney@gmail.com with 'monthly update' in the subject line.
SAMPLE STORY 4 "Allowance and Chores"
My husband and I struggled for years over an allowance/chores debate. I felt that chores shouldn't be tied to an allowance , but my husband thought there should be a direct correlation between work and money.
We finally came to an agreement: our children would have chores to help our household run more smoothly. They would receive a monthly allowance of $1 for every year of their age with the expectation of a 10 percent charitable contribution and a 20 percent deposit into each child’s individual savings account.
We wanted to encourage them to buy more than just candy or toys so we agreed that if the child decided to spend his/her extra money on books, that amount would be doubled. Additionally, if extra money was wanted/needed for something, it could be earned through extra work.
We sat our six children (then ages 3-15) down and explained the new allowance/chore policy. They were excited to know money would be coming their way on a regular basis and super excited with the prospect of doubling that amount to spend on books. We also explained that as long as help was given when it was requested, the policy would remain intact. I didn’t want them resisting chores because they weren’t being paid for that work.
I worried about sibling squabbles over varying allowance amounts, but, surprisingly, we never heard, “How come my older brother/sister gets more than I do?” The children never questioned the fairness of the age=allowance amount. It seemed reasonable to them because with each year, they’d also get an extra dollar.
It’s been several years since we enacted our policy. We’ve gone through strong and weak phases with consistency, but the plan’s been fairly effective in helping our children understand that in a family, each person must contribute to help things run smoothly. Their savings account balances have gradually increased, and the kids are now far more likely to spend money on books instead of toys or candy. They also understand that the harder you work, the more money you can make.
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To submit your story or idea:
- Send an email to kidsandmoney@gmail.com.
- Call 1-270-569-9390 and leave a voicemail.
To be notified when the book is ready or to receive monthly updates with the latest stories, send an email to kidsandmoney@gmail.com with 'monthly update' in the subject line.
With gratitude,
Changing the next generation one story at a time.
