Well, those are two things that don’t always go well together! Our lives were turned rather upside-down earlier this year and we had to institute a very strict budget. It’s certainly not fun but it’s necessary and we’re doing well with sticking to it.
But I found myself wondering about the impact on our almost five-year-old daughter. Alex was talking about her birthday (in January) and what she might like to have – one of which is a hamster. In the middle of a careful rendition of how she would care for said hamster she stopped and looked at me very seriously and said “Mommy, is a hamster in our budget?” It surprised me, although it probably shouldn’t, since the word budget has been a big part of the adult discussions and vocabulary this year. I just find it amazing how much she actually picks up on when I don’t think she’s paying any attention at all. I explained that I would talk to her father about the hamster and its place in the budget – I’m not sure how hubby feels about a hamster which may be more of an issue then the budget!
Alex is very bright for her age and not much gets past her so I doubt I could pretend that we don’t have to be very careful about finances right now and for the foreseeable future. And perhaps it is better that she understands, and hopefully comes to appreciate, that things are not always easy to achieve – that sometimes you have to wait and save for something that you really want.
I have watched over the last year as Alex has developed a very careful approach to buying things – she is rarely whiny about wanting things and if I say she can have only one item (in a certain price range) she carefully thinks over her choices before making a decision. She keeps a list of what to ask for from Santa and for her birthday and can tell you which things are more important to her and which things would just would be nice to have. And before Christmas and birthdays she helps me sort unused toys and outgrown clothes for donation to, as she puts it, “kids who really need them.”
The realities of our family budget don’t seem to be harming her feelings of safety, security and happiness except for those times when she can’t have something she really wants – and she recovers quickly from that. I wonder what she’ll be like as she gets a bit older and consumerism kicks in full force among her peer group but I’m hoping for the best in that regard!
If anyone has suggestions about explaining budgets and how to handle money to children I would love to hear them!
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Comments: 53
BTW: Do you know about Oriental Trading Company? They have good quality inexpensive items - stationery, gifts, toys, Halloween and other holiday items.
Thinking back, I can remember getting ten cents a week and If I wanted something expensive I had to save up. I think it is good for kids to to learn that you don't always get everything you want.
So True! It is So much better to raise your children honestly and sensibly than to try to paint rose colored glasses on them as so many do. My 16 year old daughter has a job as a cashier. She just saved up her paychecks and bought herself a cricket phone all by herself. Her words they day she bought it? "And I'll appreciate it and take better care of it than all my friends who've had one for ages. I'm always yelling at them for throwing them around, leaving them places, and abusing them!" Which is true! lol Both of my daughters would rather shop at the local Goodwill than any department store. My 14 year old was Thrilled at all that she got for 20 bucks, and both of them love to take apart old clothes to rebuild into a new item.
There are a distressing amount of young people who not only don't know how to do things for themselves, but they are totally ruled by instant gratification and commercialism! "I can't do that, but I want this and I want it Now!" attitudes are just sickening no matter what the persons age though, and there seem to be so many of them! Now, if only I could get my kids to turn off the lights when they aren't using them! lol I have found, no matter what the child's age, that "honesty is the best policy". Things like maintaining a budget are life skills that everyone should know how to implement. We don't do our kids any good by keeping them in the dark and telling them not to worry about anything. The smarter the kid, the more they see and accept such things. Children are an endless source of wonder.
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U
U wishing you laughter
They save 1/3 or a short term want (video game, toy, etc.)
and they can spend 1/3 on impulse buys (candy, McDonalds, etc.)
Blessings
She does sound lke a wonderful little girl and she does deserve something special, but maybe only something that needs batteries every few months, or how about some good books?! That would help w/ the preschool thing 2!
We are almost debt free with exception to the house payment.
Dave has a program that will teach you to budget and stick to it. there is also a childrens program available.
My 18 yr old son was not taught much about money and just throws it away like a drink of water....
I think it is SO VERY important to explain to your children finances. When they get older, even as early as ten, eleven, or 12 years old.. they should be taught what a BUDGET is.. They should be shown what money comes in to the house.. what money goes out of the house.. how much money is saved.. and how little money (most of us anyway) the "Family" actually gets to keep! What CREDIT is and how important it is not to screw it up. I was NEVER taught such things and I think life would have been different if I was a little more responsibility on these subjects.. not just once, but explained many times through out their youth! Making them, understand!
Not much gets past my 5 year old daughter, either. She asks us periodically if the market was up or down for that day. When she sees the ticker, she will tell me "wow, it is up 182!" or whatever it says.
I think it is good to talk to children about how much things cost. I have told her how much money it costs to fill up the car with gas, how much our AC bill is, etc. When she gets money as a gift, we talk about if she wants to spend it or save for something bigger.
When we shop, we talk about how much things cost. I explain to her that we buy things on sale and use coupons to save money. She is getting the concept.
We have even talked to her about the economy and people losing their jobs and how it is important to save money in case of an emergency.
I agree that the realities of your budget won't harm her.
Most importantly, we teach her that the best things in life are free!