teaching children about money

chani8

Fri, Apr 05 2013, 11:07 am

amother wrote:

chani8 wrote:

amother wrote:

chani8 wrote:

We try to teach the value of 'if you don't have it, dont buy it.' No loans in this family, thus no interest issues. Going into debt is about houses only, and that is far from an issue for them.

ETA - no credit cards, only debit cards

My kids are growing up as my husband did
They are so excited to give us their money to put in the bank and we remind them that if they save the little money now when they are grown and married they will be much closer to buying a house. Dh says his grandmother would give bday money... And say this is for your house. Toys they get for behavior, afikomen, yom Tov..

Oh, so you are being the bank? Why? You can open a bank account and the bank gives them the interest, and you can explain that. Or not. The interest is going to be so little anyway. And when they are adults, they will understand. You are teaching 'saving' not 'interest', aren't you?

I guess what I wrote wasn't clear but I said they give us the money to put into their bank accounts (I'm not op)
We show the children how to save rather than how to borrow

Now I understand. Wink

Hashem_Yaazor

Fri, Apr 05 2013, 11:10 am

I'd compare it to this real life example that happened to me recently:

I went to one of these stores that come every so often and you pay check/cash. I forgot my checkbook. I borrowed a check (or cash) from my sister and paid her back later that day. No interest was necessary.

Putting things on credit cards when paid in full by the due date does not result in interest charged either.

Not all loans require interest to be paid, Jewish or not. I think you're going out of your way to teach a lesson that does not apply in this case.

Teach them about budgeting and proportioning money, and if they have the money but no access to that, it's no different than asking your friend for a couple dollars for a few hours just because you left your wallet at home and you're on an outing with her.

shalhevet

Fri, Apr 05 2013, 11:23 am

amother wrote:

chani8 wrote:

amother wrote:

chani8 wrote:

I guess what I wrote wasn't clear but I said they give us the money to put into their bank accounts (I'm not op)
We show the children how to save rather than how to borrow

I don't think they are learning how to save at all.

They are learning that they don't have to give anything up to put money away, since they get given toys etc. without having to pay for them at all.
Generally, the only people who can afford to have their children save all their monetary gifts are wealthy people who have no problem providing all their children's needs (wants?) from their own pocket. And these people 99% of the time come from wealthy families who give large monetary gifts.

When bubbe gives a child $10 for their birthday and $100 for their bar mitzva, it isn't going to help much to buy a house. And the child might have their only chance to buy a longed-for game with that $10.