Dear Kids Wealth, help me!
My ten year old daughter has been begging me for toys for weeks. Each day she shows me her “wish list” online that is full of dolls and accessories that she wants. While I want to be attentive to her interests, having to explain that I cannot buy any of the items on her list is frustrating. It doesn’t matter how many times I spell it out, she still looks at me doe-eyed and proceeds to continue sharing the specific details of her selections.
Instead of giving in to her requests and buying a toy from her list, I bought the Kids Wealth Money Kit.. This kit is the answer to my prayers! I have always looked at paying my children as something I would need to do in addition to what they are already receiving from us. Since additional expense is not in our family budget, we have never had the opportunity to pay our children for their chores or offer payment for extra tasks. The Parents Guide included in the Kids Wealth Money Kit helps calculate how much you are already giving your child without even realizing it. For example: Do you buy your child snacks at the grocery store? Pay for their trips to the movies? Buy extra clothing? Give them money for the arcade or new video games? – these everyday expenses and gifts to your child can be used to calculate how much you will give them on Kids Pay day with the Kids Wealth Money kit.
Are you kidding me? Do you know what my kid will do with that money?
My husband’s first reaction to the Kids Wealth Money Kit was quite funny. “So, I’m supposed to let her be in charge of buying clothes, snacks, reading books, etc? What if she doesn’t buy them and needs it? Then what?”
I admit, I had the same reservations and Kids Wealth addresses that issue too. This is how: Only a portion of what you would usually spend on your child is given to them on Kids Pay day. That means you, the parent, will still spend some money on your child, just try to reserve it for their “needs” instead of “wants” unless it is special. The program further encourages parents not to allow your child to “borrow” from you once their pay is spent.
After reading the the Kids Wealth Money Kit Parents Guide with my husband, I called in my ten year old (and my bigger bunch too, didn’t want anyone to feel left out). We spelled out the Kids Wealth plan and signed her agreement form. Money will be paid to her (big kids) on the 24th of each month but money must be allocated as follows:
30% to Wealth, 20% to Plan, 20% to Learn, 20% to Fun, and 10% to Angel
Wealth is a long-term savings account that is not to be touched. The purpose of this account is an investment into their future.
Plan is a short term savings fund to be used for large purchases (Example: a new bike or gaming system)
Learn is to be utilized for educational purchases. (Examples would be a new book, colorful pens, a trip to the museum)
Fun is the main portion that the kids were concerned with. The “what do I get to spend now” money.
Angel is money that is used for donations to charity.
When I told my big kids that I am going to start allowing them to control a portion of the money I spend on them, they were overjoyed. When I told them we were going to teach them how to manage that money, they weren’t nearly as thrilled. Thankfully, my ten year-old was still as happy as she was before. She, such as smart girl, didn’t see the guidelines as binding, but as a way she could invest and grow her money while still spending some on what she wants!
Payday is on the 24th each month and my daughter is thrilled to get paid in a few days. After working together in the Money Tracker workbook for the past week she knows where her money will go, and what she will be spending her fun money on this month. In regards to her “Plan” money, she is still undecided on what she will save for first, but I told her there was no rush.
Has the wish list stopped? No. But instead of the doe-eyed, please buy this for me, look – she is adding to her wish list and looking at all of the possibilities that SHE can buy for HERSELF instead! This is resolving my crushing “I’m sorry, I can’t buy this for you” conversation from happening EVERY. SINGLE. DAY.
Please visit Kids Wealth for more information on their Money Kits.