A few weeks ago I showed someone how to balance her checkbook, she was worried because she only had around $2.00 in her checking and had written some checks that she thought would be good. I talked to her again today, and she had some follow up questions that were pretty basic but showed that she was trying. She thanked me for showing her what the check register was for because it relieved a lot of her anxiety about her account.
This situation is important for two reasons:
As a result, a few little homework questions for the day
Is there something you need help with that you should ask someone about? (even if it’s something you should know)
Is there someone you ought to say thank you to?
This is a question for readers who have children.
How soon is too soon to start teaching children about money?
When you do start, which is better teaching them with play money (token economy) or real money? Why?
I’ve talked to a couple of people now with young children, and frankly I don’t know the best way to answer the question. If it were my children, they would have a piggy bank, savings account, and some real cold hard cash in there ($175 in the savings, $25 in the piggy bank).
Why I won’t use a token economy
I don’t feel that token economies are bad, but token economies teach kids to hoard for a little while and then spend everything in one go. It’s not so important when their little, but when they get a checkbook (this might have happened to me ;) ) There’s a lot of cash that gets spent quickly on things that they don’t need, and if they’re not careful, the overdraft fairy comes and takes more money away.
Token economies don’t teach compounding usually, which is knowledge children need to see in my opinion, and in a real way. The piggy bank is going to have one of the best rates of return ever when the child is old enough to understand compounding. Now that I’m thinking about it, I could teach them about lending too, but in a nicer way than a bank may do it.
So, what’s your answer to the question?
Well, it’s officially fall, which means there are all kinds of new ways to have fun.
I hope everyone has a fun Friday, feel free to share any of your Frugal Fall Fun tips here.
I’ve been spending a lot of time debating with myself whether or not to write this post. My wife and I will be moving soon, and with a move comes a lot of extra tasks around the house, and fun address-change things to do. I would like to continue to blog, but I’m afraid that with my other family obligations I won’t be able to provide as good of a service to my readers. So, with that in mind, I’m putting this blog into hibernation until my wife and I get more established after our move.
What this means
I thank you for your continued support of this site, and look for a frequency increase around the end of November.
Well, the blog’s been in hibernation for basically all month now, and it still is, but I felt like re-capping some of the nifty factoids about our move.
…until you ask how much it will add to your electricity bill.
Fun TV facts
So before you do your holiday shopping, ask what the thing will really cost you.
Well, as you may have guessed, it costs a lot more money to live in Madison than it did in Stevens Point. This means much more creative budgeting for my family until we can get established…
Anyways, with the recent drop of the interest rates by the fed, keep an eye out for good refinance deals to pay less interest on loans you already have, and perhaps combine a few loans into a lower-interest vehicle. Christmas credit card spending can really put the hurt on you, avoid using credit cards unless you can pay it off in full. Try writing credit card purchases into your check register, that way you can write a big check and pay them off at the end of each month.