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Tuesday, June 17, 2014

{Parenting} Money Doesn't Grow on Trees - Kids Bank Account

     Do you dread taking the kids to the store with you? Is it always, " Mom, I want this?, Mom Can I have this?, Mom we need more of these?, Mom is this the kind you got last time?, Can we get those next time? I want this for my next birthday {birthday is still 355 days away}; It's like 50 questions every time I take my little ones to the store. Most of the time it is because they want or "need" something. Well that has changed within the past month with the Kids Bank Account.

This all started because we are going on vacation to the happiest place on earth, yes, DISNEY, in 80 something days and I am so very excited, as are the kids, my children already know what day and have it marked on their calendars! With my husband and I saving and pinching pennies, it was important for our kids to do the same.
     Our children have been doing "chores" since they were, I would say four. Picking up their toys, helping do other things that they didn't realize for a while were chores. We always told them it was how they helped with our family because that is true, but the older they get, the more they want, the more they want to do, and see, and so I thought it was time to give them an allowance and teach them Money Doesn't Grow on Trees.

     The kids allowance is $5 dollars a week, and they are so excited about that! If they complete all their chores from their chart with no whining, no back talk, and the right way that they have been taught, then every Saturday they will be given $5.00. Well the more I thought about this, I didn't want to just give them actually a $5.00 bill, I wanted to teach them also about how a bank worked because with their generation all they will probably have is debit cards, no cash or change. So I set up each child a "bank account"

-Every Saturday, the kids receive a new bank statement, like the ones above.
-On the statement it shows their Spending Money and their Savings, currently their savings is set up for Disney, so all money in their savings is only for the Disney Trip. Anything left will go towards whatever they want to save for next.
-There is also a Total that shows them the Total Balance they have with Checking & Savings, just like ours does, I wanted it to be semi-realistic.
- Underneath the account balances, I have placed their Account Activity, when I first put them up we explained that it showed them what is going on in their account. When Money was added, when they spent money, and so one.
**We have three rules about the kids money:
     1. You must discuss all purchases with mom and dad first, you cannot just go spend your money on whatever you want.
     2. Anything you put into savings from your spending money cannot be transferred over.
     3. $2.00 each week is contributed into Savings.

     The kids are very happy with this. I also enjoy choosing their images for their print out and hanging it up. They always come to see what they have now. My son is the one that allows money to blow a hole his pocket, he is always thinking of the next thing he can buy, but is so indecisive when he gets there to buy it, it takes 30 min+ to decide. My daughter on the other hand refuses to spend any of her money, she wants to save it all and spend it in Disney World. {She's going to break the bank}
     This has been great at helping the kids understand they only have so much money. Also talk to them about the stuff you buy at the store when grocery shopping, and show them the prices and the difference in some things and how some are not different, just different prices. This really will give your child/children a better understanding of money that they can continue to practice to make sure they are financially prepared adults and do not just blow all their money or live off credit cards.

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