This Mom Is Charging Her 5-Year-Old “Rent”
Five takeaways:
- This article is about a mom who charges her five year old daughter $5 out of her $7 weekly allowance– for rent, utilities, food, water, and cable. The remaining $2 is the child’s money to spend however she wishes. The $5 that the mother takes for “bills” actually goes into a savings account she’ll give to her daughter when she turns 18.
- The piece debates the merits of such a plan– ultimately applauding the mother for making the value of money less abstract.
- Teaching kids that bills come before less necessary expenditures can have hugely positive long term effects.
- This practice can teach children that nothing in life is free and that budgeting is the key to saving for things you want.
- It can also help overcome a child’s sense of immediate gratification. Saving will introduce the concept of delayed gratification, which will help them become less impulsive.
From Denise Hill at WiseBread:
Read the whole story.
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