In our last lesson on Kids & Money
, we took a bit of a different perspective — discussing the concept of “it’s OK to want things” with your kids, with some examples of the actual conversation that would take place. The goal of our last lesson was to explain this concept, and how it happens to adults as well — that sometimes, we want things so badly that we’re willing to do things we regret in order to get them. This month, we’re taking this to the next step with some examples.
For Elementary Ages:
Present the following scenario to your kids:
You just received $10 for washing mom’s car. You know that you are $5 away from a GIVE goal and $2 away from a SAVE goal. But,. you also just found out that the new LEGO set (or whatever new toy is most popular at the time) is available. If you take the $10 you just made plus $5 more dollars, you can get the LEGO set right now!
Should you…
- Borrow the other $5 from your parents and ask them to take it out of your allowance or add additional chores so you can buy the toy?
- “Borrow” the money from your GIVE and/or SAVE goals to buy the new toy?
- Should you complete the GIVE and SAVE goals and add the remaining $3 to your LIVE budget and wait until you can afford the toy from your LIVE budget?
Walk through each of the 3 choices and talk about how the kids think they would feel in the short term and the long term.
For Middle Schoolers / Teens:
Okay, we are going to give you a situation and let you decide what is the wise thing to do…
Scenario: You just received $10 for washing mom’s car. You know that you are $5 away from a GIVE goal and $2 away from a SAVE goal. But you also just found out that the latest video game you’ve been wanting is available. If you take the $10 you just made plus $5 more dollars, you can get the game right now!
Should you…
- Borrow the other $5 from your parents and ask them to add additional chores so you can buy the game?
- “Borrow” the money from your GIVE and/or SAVE goals to buy the new game?
- Should you complete the GIVE and SAVE goals and add the remaining $3 to your LIVE budget and wait until you can afford the game from your LIVE budget?
Walk through each of the 3 choices and talk about how the kids think they would feel in the short term and the long term.
Additional Tips for Parents:
Feel free to massage the scenarios and choices a bit to make each concept more appealing and relevant to your kids specifically! This will cause them to really think whether it’s better to want, or to owe.
Random Fun:
Need a break from teaching financial life lessons? Start a contest with the kids to see who can talk the longest without using the letter “R” in any of their words.
August 2019
