Wednesday, December 5, 2007

Commissions...

The Professor and I have been listening to Dave Ramsey's Financial Peace University. (Click here to see Dave's Site. Click HERE for FPU.)

During one of his sessions he talked about what he does at home for his kids regarding money.
He would give them Commissions. If they worked - they got paid. If they didn't work, they didn't get paid. If his children did 5 chores during during the week (I think this is how it goes) then he pays them 5 - $1 bills. $1 goes into an envelope marked "tithe". $1 Goes into an envelope marked "Savings". The rest is spending money.

I'm a "choreganizer". I really enjoyed the set up of the "chore charts" and the little chore cards - though, our chores don't always go with their cards. The problem came when it was time for the kids to buy something with their "Mom Money" and "Dad Dollars" from the "Store".

The first time, I was giving them little things that I had bought. Then when I couldn't find nifty things to be bought - I just gave them an exchange rate of 50cents per Mom Money or Dad Dollar and they could pocket the change.

They did learn a bit about money. They learned they could earn money. The learned the could spend money. The problem with giving them cash in this way, came when they'd gather up their quarters or $1 bills and go to the store with me. Those little vending machines are nothing more than kiddie slot machines. *sigh* Mini-Me was sorely disappointed more than once. G on the other hand, bought some little rubber aliens he keeps in a plastic tub on his shelf. Oh, I'm sorry, it's a space-ship.

When I heard about Dave's idea I jumped at the chance to try something different. Especially to teach them about tithing. (And to get out of stocking the MomStore.)

It has been an absolute blessing!!!

I started with the $5 Dave Ramsey suggested and we get paid once a week. Mini-Me discovered that her money would accumulate if she didn't spend it. G spent his quickly at first. They're starting to get the hang of this money thing, though.

Mini-Me went with me to an electronics department store and as we were sauntering through the movies (I was idea hunting for The Professor) she found a movie that was within her budget. She was thrilled to find it - but saddened by the fact that it was 67cents out of her price range. I had mercy and gave her the 67 cents. She offered to pay me back, by the way, but I told her to keep it. (I might need to borrow money from her.)

She takes her purse everywhere with her now and G will put his spending envelope in my purse, just in case. We can't always walk through the toy aisle...but the day we went window shopping at the toy store and he bought his on Robin action figure was a great day for him.

Mini-Me has also rejoiced in the fact that she bought her movie "With her own money".

I've really enjoyed them get the idea of tithing.
They're really not sure of the reason behind saving - and I tell them to just get used to it. I don't want them to make the same mistakes I made.

I've discovered that Ramsey's site has a site for kids and He's written some curriculum geared toward children. The Curriculum might have to find it's way to our home for next year. For right now, we're working on commissions and loving it.

3 comments:

Halfmoon Girl said...

Interesting. I tried to tie chores and allowance together, but it just didn't seem to work very well. Now they just get allowance, but I am not great about remembering. I have some cans set aside to label tithing. Thanks for the reminder!

Lisa said...

Money means nothing to Rosie. This has its pros and cons. ;o)

jugglingpaynes said...

If I had a dollar for every time I've borrowed money from the kids...Wait, let me go borrow one.
I heard of this method. It makes a lot of sense. And I will tell you one thing I did with my oldest when she wanted a pricey toy. (Caveat: This idea has only worked with Marina so far.) I had an extra check register that I gave her. We started giving her a $5 allowance. I showed her how to write in the money she received and subtract the money she spent. I even had her write in what she spent it on. By the time she save enough allowance and relative money, she understood how keep track of her finances.
Too bad it only worked with her!
Peace and Laughter,
Cristina