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Showing posts from October, 2006

Teaching a child the value of money

Last week, my son wanted to buy the Star Wars Transformer he's been eyeing for the last month. My wife finally relented and they went to Toys 'R Us. My wife called me up and told my son to talk to me to see if I'll allow him to buy it. I told him that he can buy it as long as he pays for it. Being 4 years old, he doesn't really understand the concept of money and exchange yet. But I thought this might be a perfect way to teach him the value of money. So my wife paid for it and I told him that I will take the money he spent for the toy from his piggy bank. So last night, I sat him down and we counted out the money he spent. At first I took out the the Dollar coins and quarters, but when I counted out $22 worth, it barely reduced the content of his piggy bank. Since he's only beginning to learn how to add, it's a little difficult to get him to understand if I took the actual amount. So I decided to count out the pennies and nickels instead, now we're talking!

How not to raise a spoiled rotten brat

Here's an interesting article on CNNmoney.com on how the rich and powerful teach their children about money and not to grow up with the entitlement mentality. A couple of examples like part of their allowance is expected to be given to charity and to savings. Another where they are given a budget for shopping and a limit is set, if that limit is used up, tough luck. To read more, visit this site .