Monday, June 15, 2009

Children and money management: hands-on experiment and experience

I've just started-off Ariel with some simple money management - allowance $2 per week, $1 for saving (accumulated in jar 1) and $1 for fun spending or accumulation for future spending (purse in her bag). I keep asking Ariel to count the dollar notes each week as she allocates her additional savings into the jar, then tell her Papa will give extra $1 when there's $10 inside. Must give some incentive mar, right? :D

So far, she understands the value of her money as she can go on rides (merry-go-around in Ikano $1), buy lollipops/ice-creams ($1) and some "big ticket items" like sticker books using her accumulated unused fun spending money. Heheh - imagine me explaining the numbers and values in terms of weeks to her when she wanted to grab a big puffy Barney soft toy costing $70+.

I say, I still do buy her books and pay for funducation classes out of my own wallet, not her purse but all the "guilt" associated with toys and stuff (non-educational / safety / growth) are gone. Hheheheh - transference of "risk" as the insurance industry says (mine's "guilt") + education in value and handling of money for Ariel.

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