Teaching Money-Sense
When our children were young, we opened a bank account for each of them. Actually, guided them at the bank closest to where we lived through the mechanical process of opening their bank accounts, and we were co-signatories because of their young age. We taught them how to fill out deposit slips and sign over cheques to be deposited to their accounts. All of the baby-bonus cheques our family received for our three children were to be deposited to their personal accounts.
If they earned money eventually, and if they saved money from their allowance it would be their choice whether or not to deposit any of that too, to their accounts. It was a prosaic, although perhaps slightly affirming project for them, not yet in their teen years, but for me it was an exciting event, for as a young person, let alone a child I had never been given such an opportunity.
Having a bank account and talking to one's children about the disposition of money at their disposal is a fine introduction to teaching them about economic transit; from our pockets to theirs and then to the bank. And it engenders within them a sense of satisfaction that they have attained to this position in life of acquiring the wherewithal which might permit them, should they wish it, to become purchasers of goods.
A whiff of independence, a push toward responsibility in decision making. An introduction on a small scale to the world of commerce. So when I read about an accountant (doesn't it figure an accountant would be so obsessed with numbers/money...?) determined to give her three children a financial start by teaching them about money management, she established six bank accounts in each of their names.
Sounds to me more as though she is gifting them with a life-long money neurosis. Each child with six bank accounts, ranging from long-term savings and investments to everyday needs. Two in their direct control; one designated for necessities and one for play. This is serious financial management. These children will most certainly learn the lesson their mother is determined to teach them, but what will this be teaching them other than leaving them with the indelible impression that financial management has truly critical proportions in one's life.
Which is fine, but not in one's emerging life as an adult, for these are mere children; lessons should be geared to the suitability of learning at the appropriate time in life. Money management as an obsession for young children will result in adults with a money psychosis; her youngest child, after all, is a mere five years of age. Yes, it helps with their math skills, yes it can teach discipline, but for all things there is a season.
Children can be taught a certain level of responsibility for their spending decisions quite apart from such minute compartmentalizing of income and management to the degree that each child requires six bank accounts. Children learn things almost by osmosis, listening, watching, repeating, emulating, and when they hear discussions between their parents about financial issues and money management they begin to understand the basics of both.
Gradually introducing children to saving and spending and eventually earning to save and spend is part of giving them some of life's integral lessons. Good habits are learned as they become more mature and understanding of what options are placed before them. Intense regimentation satisfies only the rigid accountant residing in the breasts of those who invest too much importance in financial issues.
It's amazing how quickly children learn that the money they acquired by saving allowances, for example over a long period of time can simply evaporate in the euphoria of a single determined purchase. When the child cools down and balances the length of time the purchase cost him in savings against the true value of the purchase, this can be a very powerful learning experience.
Making money valuation a intense exercise at a young age isn't the wisest course, but it most certainly will result in an over-valuation of money in a world where so many other issues should take precedence.
If they earned money eventually, and if they saved money from their allowance it would be their choice whether or not to deposit any of that too, to their accounts. It was a prosaic, although perhaps slightly affirming project for them, not yet in their teen years, but for me it was an exciting event, for as a young person, let alone a child I had never been given such an opportunity.
Having a bank account and talking to one's children about the disposition of money at their disposal is a fine introduction to teaching them about economic transit; from our pockets to theirs and then to the bank. And it engenders within them a sense of satisfaction that they have attained to this position in life of acquiring the wherewithal which might permit them, should they wish it, to become purchasers of goods.
A whiff of independence, a push toward responsibility in decision making. An introduction on a small scale to the world of commerce. So when I read about an accountant (doesn't it figure an accountant would be so obsessed with numbers/money...?) determined to give her three children a financial start by teaching them about money management, she established six bank accounts in each of their names.
Sounds to me more as though she is gifting them with a life-long money neurosis. Each child with six bank accounts, ranging from long-term savings and investments to everyday needs. Two in their direct control; one designated for necessities and one for play. This is serious financial management. These children will most certainly learn the lesson their mother is determined to teach them, but what will this be teaching them other than leaving them with the indelible impression that financial management has truly critical proportions in one's life.
Which is fine, but not in one's emerging life as an adult, for these are mere children; lessons should be geared to the suitability of learning at the appropriate time in life. Money management as an obsession for young children will result in adults with a money psychosis; her youngest child, after all, is a mere five years of age. Yes, it helps with their math skills, yes it can teach discipline, but for all things there is a season.
Children can be taught a certain level of responsibility for their spending decisions quite apart from such minute compartmentalizing of income and management to the degree that each child requires six bank accounts. Children learn things almost by osmosis, listening, watching, repeating, emulating, and when they hear discussions between their parents about financial issues and money management they begin to understand the basics of both.
Gradually introducing children to saving and spending and eventually earning to save and spend is part of giving them some of life's integral lessons. Good habits are learned as they become more mature and understanding of what options are placed before them. Intense regimentation satisfies only the rigid accountant residing in the breasts of those who invest too much importance in financial issues.
It's amazing how quickly children learn that the money they acquired by saving allowances, for example over a long period of time can simply evaporate in the euphoria of a single determined purchase. When the child cools down and balances the length of time the purchase cost him in savings against the true value of the purchase, this can be a very powerful learning experience.
Making money valuation a intense exercise at a young age isn't the wisest course, but it most certainly will result in an over-valuation of money in a world where so many other issues should take precedence.
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posted by Pieface @ 5:19 PM
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