March 21, 2011 by Amy
Pre-school Econ, or Baby Budgeting
Zoe had her first hard lesson in economics at the mall yesterday.
For Valentine’s Day, we bought her a little owl coin purse she wanted from Borders on the condition that it was to be her allowance keeper. She’d been simultaneously helping out around the house and asking for things when we go shopping, so we figured now is the time to start teaching about the value of money and material possessions. Also known as, “How to ensure your kid is not a spoiled brat.”
She receives a nickel every time she feeds the cats (which is twice a day), and a quarter every Sunday for helping M with the trash (she fetches the small cans from each of the rooms and brings them to the kitchen for dumping in the kitchen bag, then returns them). She earns bonus money for helping with extra projects (another quarter yesterday for helping me wash windows). She steadfastly deposits her change into her coin purse, and every once in awhile we dump it all out and count it. It has earned a permanent spot on the kitchen counter.
Her first purchase was a bunny-ear headband from the dollar bin at Target. She didn’t mind a bit forking over $1.07 for it, and continues to wear it regularly (good purchase). Yesterday, though, she went to the mall with us, owl change purse in hand, with the intent of shopping in her favorite toy store. Before going in, she and M counted out what she had: $3.80. She was ready.
They found me later in Bare Escentuals, Zoe teary-eyed and sniffling.
“What’s going on?”
“She found something she wants, but she can’t afford it. And I wouldn’t buy it for her.”
Ah, time for your first lesson in saving, young grasshopper.
The three of us had a good discussion about saving for things we really want, and working hard to earn money to buy the things we want. We calculated out how long it will take her to save up for the stuffed animal at her current earning rate, and how she might be able to earn more by providing extra help. We explained that lots of times there are things that we want to buy, but we can’t because we have not saved up our money yet. She looked interested.
I said, “Do you know how long Daddy saved to get our Corvette?” She shook her head. “Over ten years. A long time.” Her eyes widened. The 12 weeks (give or take) it’ll take to get to her purchase goal pales in comparison, although 12 weeks to a child might as well be 10 years.
I wasn’t sure our discussion worked, but she was calm after that and resigned to the fact that she simply hadn’t earned enough money to make her purchase yet. We didn’t hear another word about the toy, but she has since asked me, “What can I do to help? How can I earn more allowance?” And you bet your bippy after she fed the cats this morning she was right there, coin purse open and jingling, waiting for her pay.
She’ll get there. And I’m so proud of her for really learning from this and figuring it out.
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