Annie's Mailbox: How NOT to teach kids to save money
leno...@yahoo.com
http://www.creators.com/lifestylefeatures/annies-mailbox/annie-s-mailbox-r-2009-01-28.html
Dear Annie: I recently noticed that my grandson spends his allowance
and gift money as soon as he gets it. In fact, he is almost frantic to
spend it. I wondered why, and then found out that instead of timeouts
or having privileges rescinded, he is disciplined by having his money
taken away. That explains why he wants to exchange it for tangible
goods as quickly as possible.
I am concerned that this method of discipline is setting him up for
financial failure later in life. He is only 8 years old, but early
experiences with money can be very significant.
My input would be seen as unwelcome interference.
Is there anything I can do to help my grandchild learn money
management skills in this type of environment? Are there more
effective forms of discipline? — Observant Granny
Dear Granny: Most discipline involves taking away something the child
values, such as toys, television time or interacting with friends and
family members. In your grandson's case, it's money. Essentially, he
is being fined for bad behavior. That would be OK if it's a specific
amount. However, if a large or arbitrary amount is taken when he
misbehaves, it teaches him to spend immediately and not save anything,
both of which are terrible habits to learn.
Offer to set up a savings account for your grandson, in his name and
yours, where he can put aside some of the gift money you (and others)
give him. Let him see the balance grow, and encourage him to save up
for something specific. That might help.
(end)
Regarding what the parents are doing, it seems to me that even if it
ISN'T a large or arbitrary amount, the effect would likely be the
same!
Lenona.
Rod Speed
Likely. Be interesting to see how he turns out.
im.1.max...@xoxy.net
Sounds like the kid has a financial future. He has learned that money
is not worth as much tomorrow so he's investing in commodities. That's
a real world lesson. Now if granny comes along and bails him out,
that's a very current real world lesson.