Mistakes Is Good

There may be no better teacher than a good, old-fashioned mistake.  For a time, my five-year-old daughter had been sinking all of her money into her Save jar after success with goal setting and managing her allowance effectively enough to buy a scooter, shoes and mini pottery wheel (long-term saving for a youngin').  Daddy was happy.  The lessons were working and it made good blog fodder.  But then, suddenly, she started plunking her allowance dollars into her Spend Smart jar.  What was this?!  Regression?  A big mistake?

Whatever it was, it was her choice and it remains to be seen whether she is making mistakes by shifting her focus from saving to spending.  What it certainly means is that Daddy has to heed his own advice to her - allow her to control her own money.  The purpose of the allowance is to teach her about money and making mistakes is part of that process.  We'll see what she does.  And after all, if she does slip up it's ok because, you know, mistakes is good.

-John

Goal-Setting for Kids

So it wasn't a one-time occurrence.

Immediately after having success with pasting a goal on my daughter's bank to encourage savings (see 12/26 post), I decided to ask her if she'd like to try it again. She did, picked out a scooter that she wanted and, lo and behold, she successfully saved again. Most importantly, she allocated most of her allowance EVERY week to saving for this goal. Over the course of almost three months, and with a little help from her friends (read "grandmother"), she saved enough to purchase a scooter that she wanted.

To those who might downplay the importance of starting young, don't underestimate the importance of starting this process sooner than later. Learning to delay gratification is a very important trait that your kids can develop early. Columbia University Psychologist Walter Mischel found a link between preschoolers who displayed this trait and future success. He found in follow up studies that preschoolers who displayed this trait were better adjusted and achieved more academically. Want to know more? Click here.

-John

A Christmas Gift

So what was my daughter's favorite present this Christmas? Her own.

Quick back story - As mentioned in a previous post, we recently tried the saving-for-a-goal approach to dealing with allowance. My daughter taped a picture of something she wanted to buy - a neat, kid-sized pottery wheel that came with wood, clay and paint. Over the course of a few months, she saved enough to purchase the wheel. Having the picture taped directly to her save bank helped serve as a reminder at allowance time. Sure enough, most of her money went to saving. When she saved enough for the item, she gave me her money and I purchased it online for her. I would have preferred to purchase this item at a store so she could physically pay for the item, but then this wouldn't have happened...

Back to Christmas - She had already opened most of her gifts as I picked up the brown box that had arrived with her name on it (one of several). It had been a busy holiday season and I had forgotten about the order we had placed for her. I thought this was another gift from one of her long distance relatives. We opened the box together and when I realized what was inside, I almost jumped with excitement. My daughter, though, went bananas. She was so excited and proud that she had received the toy for which she had so diligently saved. It was a an exciting moment for both my wife and me. Of all the presents she had received, none had elicited such a powerful reaction. We had stumbled into an incredible teaching moment for our child. She had learned the power and pride of saving for something on your own. She had received an incredible Christmas gift...from herself.

I wish you all a Happy New Year!

Starting Early Is Very Important

Good morning. In the first newsletter for my DVD, "The Money Mammals: Saving Money Is Fun," I included some valuable information from the National PTA that I thought bared repeating in my blog. Teaching your kids about money early is advocated by credit unions, banks, money experts and the National PTA. Below is what the latter has to say.

Get started now:

1. As soon as children can count, introduce them to money. Take an active role in providing them with information. Observation and repetition are two important ways children learn.

2. Communicate with children as they grow about your values concerning money --- how to save it, how to make it grow, and most importantly, how to spend it wisely.

3. Help children learn the differences between needs, wants, and wishes. This will prepare them for making good spending decisions in the future.

-Brought to you by National PTA® by Paul Richard (from FamilyEducation.com)


Let me know what's working for you to help teach your kids about money.

-John