#890 Think About Your Money Like A Kid

21 May

baby playing

Mom and Dad couldn’t resist this toddler’s request for money.

She said it clearly with an expectant look on her face – “Money.” She had never said the word before. I thought maybe I had misheard. But she repeated it – “money” – with the same expectant look on her face.

Yikes! The kid’s not yet two, and she’s asking me for money. Clearly this toddler expected to receive some money. While I was scraping my jaw off the floor in shock after my child’s first request for money, my husband was dancing around with her. He was ecstatic at her growing vocabulary, impressed with her demand and handing her $1 from his wallet.

“Money, money, money,” my daughter repeated, clutching her dollar bill.

“We’ll have to save it, and you can buy something with your money when you go shopping with Mommy,” I said.

She and Daddy found an acceptable stash spot for safekeeping until the weekend. Come Saturday, which is shopping day, she requested her dollar and retrieved it from her piggy bank.

Now that she was requesting money and receiving some. I’d have to show her how to use her money responsibly.

one dollar bill

What can you get for $1?

“You have one dollar,” I told her. “Whatever you can find for your dollar, you can buy. Something you want. But it has to be a dollar because that’s all you have.”

I dreaded trying to find something for $1 (what about tax?). So we made a stop at Goodwill. I knew they had lots of $0.99 kid items. With my 10% discount card, it would take care of the tax question.

My daughter found a pack of Crayola washable markers and immediately said, “uh huh, uh huh, uh huh,” and clutched the package tightly to indicate that this was it. No need to look further. And it was the on sale color of the week, meaning it was 50% off of the marked $0.99 price. This girl could already spot a deal. I was proud. With my discount card, the markers were $0.47.

I had her get her dollar from her pocket and hand it to the cashier. She parted with the money in exchange for the markers with no protest, much to my relief. I told her the change was hers to keep.

As we progressed through grocery shopping, I had promised to get her a dog coloring book to go with her markers. “Wouldn’t it be nice if she could get it on her own instead,” I thought. We shuffled through the whole coloring book display to find the coloring book with only dogs. The last one left had a box cutter slash through the cover from when the stock clerk had opened the box. It was $1. I saw how this could work.

“Here’s the coloring book. Mommy will bargain so you can buy it with your money,” I told her.

At the register, I used my usual friendly and casual mention (with a hint of concern) to point out the box cut cover.

“I’ll mark it down to $0.50,” said the cashier.

Score! At $0.53 for the coloring book and $0.47 for the markers, it was exactly $1 for my daughter’s first purchase. No extra money from Mommy, just a little bargaining help to compensate for her limited vocabulary. I’ll never be so lucky again. But the whole process got me to thinking about how I thought about money when I was a kid, and how I want to teach my daughter responsible money habits.

Here are kid thoughts on money that would help anyone:

  •  The money you have is it. There is a $1 in your hand. There are lots of items out there that you want but only the items that are $1 are available to you to buy. No credit, no extra indulgences. Pick an item that matches up with the money in your pocket, and you’re done. This is perfect for daily purchases and everyday necessities.
  • Put the money away for safekeeping. You don’t spend your money right away. You put it in a safe place and retrieve it when you’re ready to buy what you want. You wait patiently. Occasionally you can take a peek at the money to make sure it’s still there. But no touching it until it’s time to spend it.
  • You can spend or save. You have money. You can choose to spend it, or save it. If you spend it, you don’t have any money left. If you save it, you can get something bigger once your money accumulates. Or you can keep saving like a squirrel storing nuts, planning for the long winter.
  • You have to earn your own. Even if parents give you money, it has to be earned. For chores, for working a “real” job or, when you’re not quite two, for impressing your parents with your vocabulary.

I can see a whole thesis being born based on this philosophy. All I needed to know about money, I learned in preschool…

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