Personal Finance for Kids

I love the negotiation part of it. I think you are teaching a lot of critical thinking, debate skills and number sense when you let even a 3 year old negotiate a bit. My son usually negotiates his bedtime when I say, "Ten minutes until bed". He usually gets an extra few minutes out of me. The kids I see who struggle the most in math never seemed to get this type of thing because they are told exactly what to do and when and consequently their logic and decision making skills are weak.
 
[quote author="SoCal78" date=1233795484][quote author="PANDA" date=1233789809]Thank you SoCal, Tmare, and ISM for your insights on this topic as it is an interest of mine of rasing good, responsible kids in OC. Though you guys have very strong financial values and are trying teach your kids the same values, what happens if they are around very spoiled children where their parents spoil them rotten. Would that have any influence on your children in any way? No kids yet, but just curious.</blockquote>


You know, I do worry about the influence of the other kids. I think the parents just have to set an example. My son knows that we have enough money (I put it in terms he can understand - like how many Wii's we make a month) but he still sees me clipping coupons or saying that I really like something but I'm not going to buy it because I like the money more. A penny saved is a penny earned.



It is interesting to see his little classmates' reaction to things. Just recently he'd been getting a lot of holes in the knees of his jeans and other pants when he's been playing - some of the pants he's only worn a few times. I thought this is ridiculous - I'm not going to go out and spend money on a new pair of pants every time he skins his knee. So I bought some iron-on patches and just did all his pants. He wears them to school and his friends ask what that is. They don't know what a patch is! We are such a disposable society. Something breaks - throw it out and buy a new one. Not in my house. No way.</blockquote>


My mom used to put iron on patches on my Tough Skins pants. The ridicule I suffered at the hands of my classmates because of the cheap pants and patches scars me to this day.



<img src="http://latimesblogs.latimes.com/alltherage/images/2008/03/04/toughskins_3.jpg" alt="" />
 
[quote author="skek" date=1233798516]Good thread. Panda, you hit the nail on the head. Our biggest fear is the impact and influence that other kids are going to have on ours. It's downright frightening to see what passes for parenting in Orange County, even at a young age.



</blockquote>


Many of my colleagues in Newport Beach tell me their teenagers have no aspiration in life other than to find someone rich to marry.
 
[quote author="High Gravity" date=1233801584][quote author="skek" date=1233798516]Good thread. Panda, you hit the nail on the head. Our biggest fear is the impact and influence that other kids are going to have on ours. It's downright frightening to see what passes for parenting in Orange County, even at a young age.



</blockquote>


Many of my colleagues in Newport Beach tell me their teenagers have no aspiration in life other than to find someone rich to marry.</blockquote>


Complete waste of time, but interesting thread on that

<A href="http://dabagirls.wordpress.com/">http://dabagirls.wordpress.com/</A>
 
[quote author="High Gravity" date=1233801426][quote author="SoCal78" date=1233795484][quote author="PANDA" date=1233789809]Thank you SoCal, Tmare, and ISM for your insights on this topic as it is an interest of mine of rasing good, responsible kids in OC. Though you guys have very strong financial values and are trying teach your kids the same values, what happens if they are around very spoiled children where their parents spoil them rotten. Would that have any influence on your children in any way? No kids yet, but just curious.</blockquote>


You know, I do worry about the influence of the other kids. I think the parents just have to set an example. My son knows that we have enough money (I put it in terms he can understand - like how many Wii's we make a month) but he still sees me clipping coupons or saying that I really like something but I'm not going to buy it because I like the money more. A penny saved is a penny earned.



It is interesting to see his little classmates' reaction to things. Just recently he'd been getting a lot of holes in the knees of his jeans and other pants when he's been playing - some of the pants he's only worn a few times. I thought this is ridiculous - I'm not going to go out and spend money on a new pair of pants every time he skins his knee. So I bought some iron-on patches and just did all his pants. He wears them to school and his friends ask what that is. They don't know what a patch is! We are such a disposable society. Something breaks - throw it out and buy a new one. Not in my house. No way.</blockquote>


My mom used to put iron on patches on my Tough Skins pants. The ridicule I suffered at the hands of my classmates because of the cheap pants and patches scars me to this day.

</blockquote>


I am sorry you were ridiculed about your pants. You know, I actually am a reasonable person and if it comes to the point where he's being ridiculed, I will reconsider. At this age it hasn't happened yet. I am sure when he's a pre-teen or even before, the last thing he's going to want is for his mom to be patching up his pants, but hopefully he'll also be a little gentler on his clothes then too. He and the other kids will care about image then. I strongly believe it's important to reinforce your child's self-esteem. I realize this does mean having them look well (without being over-done) and allowing them things that make them feel good about themselves to have confidence. It might surprise you, but when it comes to him being driving age, I am going to do whatever it takes to make sure he has a car. I'm not saying a brand new car or a luxury car, but not a beater either. I think it is critical to a guy's self esteem at that age (or so I'm told by men.) But at that point he'd better not get cocky or what is given will be taken away. I will take your advice into consideration and look for signs that my cheapness is causing him any suffering with self-esteem issues, which I definitely want to avoid. Thank you.
 
[quote author="High Gravity" date=1233801426][quote author="SoCal78" date=1233795484][quote author="PANDA" date=1233789809]Thank you SoCal, Tmare, and ISM for your insights on this topic as it is an interest of mine of rasing good, responsible kids in OC. Though you guys have very strong financial values and are trying teach your kids the same values, what happens if they are around very spoiled children where their parents spoil them rotten. Would that have any influence on your children in any way? No kids yet, but just curious.</blockquote>


You know, I do worry about the influence of the other kids. I think the parents just have to set an example. My son knows that we have enough money (I put it in terms he can understand - like how many Wii's we make a month) but he still sees me clipping coupons or saying that I really like something but I'm not going to buy it because I like the money more. A penny saved is a penny earned.



It is interesting to see his little classmates' reaction to things. Just recently he'd been getting a lot of holes in the knees of his jeans and other pants when he's been playing - some of the pants he's only worn a few times. I thought this is ridiculous - I'm not going to go out and spend money on a new pair of pants every time he skins his knee. So I bought some iron-on patches and just did all his pants. He wears them to school and his friends ask what that is. They don't know what a patch is! We are such a disposable society. Something breaks - throw it out and buy a new one. Not in my house. No way.</blockquote>


My mom used to put iron on patches on my Tough Skins pants. The ridicule I suffered at the hands of my classmates because of the cheap pants and patches scars me to this day.



<img src="http://latimesblogs.latimes.com/alltherage/images/2008/03/04/toughskins_3.jpg" alt="" /></blockquote>


High Gravity, if it makes you feel any better, I got picked on my classmates for being Asian. Those little second graders threatened to blind fold my eyes with dental floss.
 
[quote author="PANDA" date=1233816100]



High Gravity, if it makes you feel any better, I got picked on my classmates for being Asian. Those little second graders threatened to blind fold my eyes with dental floss.</blockquote>




C?mon man, give it a rest and stop trying to play that card.

You?ve posted that 100x, no need to keep playing the victim

Being asian had nothing to do with it.

You got picked on because you are a dork plain and simple.

Accept it, embrace it and move on.

Being 5?4? and chubby didn?t help either.
 
[quote author="tenmagnet" date=1233817808][quote author="PANDA" date=1233816100]



High Gravity, if it makes you feel any better, I got picked on my classmates for being Asian. Those little second graders threatened to blind fold my eyes with dental floss.</blockquote>




C?mon man, give it a rest and stop trying to play that card.

You?ve posted that 100x, no need to keep playing the victim

Being asian had nothing to do with it.

You got picked on because you are a dork plain and simple.

Accept it, embrace it and move on.

Being 5?4? and chubby didn?t help either.</blockquote>


Ten, let's not hi-hack this thoughtful thread started by Tmare with our stupid non-sense. If you couldn't tell, I was trying to make a joke. I find that dental floss line to be very funny and creative even til this day. Sorry Tmare that Ten and I are acting like little five year olds.
 
[quote author="SoCal78" date=1233795484]It might surprise you, but when it comes to him being driving age, I am going to do whatever it takes to make sure he has a car. I'm not saying a brand new car or a luxury car, but not a beater either. I think it is critical to a guy's self esteem at that age (or so I'm told by men.) But at that point he'd better not get cocky or what is given will be taken away. I will take your advice into consideration and look for signs that my cheapness is causing him any suffering with self-esteem issues, which I definitely want to avoid. Thank you.</blockquote>


Get him a beater instead. Or better yet, have him start working part-time jobs (paper routes and such) a few years before he can drive so that he can save to buy that beater himself. Not only will working for something help him build character, but the knowledge learned by getting/keeping a piece of junk on the road will serve him well through the rest of his life. It's nice not being taken for a ride when you take your car to a mechanic.
 
[quote author="High Gravity" date=1233801426]



My mom used to put iron on patches on my Tough Skins pants. The ridicule I suffered at the hands of my classmates because of the cheap pants and patches scars me to this day.

</blockquote>


Wow. I hope you are just being melodramatic.
 
I'm actually not offended by a little bit of hijacking. It's interesting to see how one thing leads to another. The anecdotal stories are interesting. I guess we all have to figure out what worked for us as children but mostly we remember what didn't. I'm trying to get a handle on the different views about how you let children spend money. I can see the argument for letting them make mistakes and learn from them when the amount of money is so insignificant at this point. But I'm also reminded of a friend growing up whose parents required her to put 50% of ALL money earned and received into a savings account. She had quite a nest egg by high school graduation. I've realized as I have tried all of the little hokey rewards like stickers and tickets that my child has developed good habits and those habits seem to stick around long after the reward has lost it's luster. So I'm wondering if some rules about certain percentages of money being taken off of the top before allowing children to spend might develop good habits in much the same way.
 
I've already started teaching my son finance.



Each night, I place these giant headphones on my wife's belly that plays your normal college finance textbooks on tape. Economics, Finance 101, etc.

By the time he comes out, he should have basic finance down. I would expect that he can calculate quadratic equations by then too.

As a parent, it will be crucial for me not to read him books on Winnie the Pooh, though maybe I'll read How Grinch stole X-mas. Instead I will be reading to him books on valuation methods, complex barrier options,

dynamic delta hedging, option hedging, asset price behavior, normal distribution returns, quantitative methods etc...



I want to make sure he really understands derivatives and how to leverage himself 1,000 times over.

That way if I'm successful, I will have created the next Alan Greenspan to fuel the next credit bubble and financial collapse.
 
[quote author="BlackVault CM" date=1233840953]As a parent, it will be crucial for me not to read him books on Winnie the Pooh, though maybe I'll read How Grinch stole X-mas. Instead I will be reading to him books on valuation methods, complex barrier options, dynamic delta hedging, option hedging, asset price behavior, normal distribution returns, quantitative methods etc...</blockquote>


I'm sorry, BV, but when I went to Babies 'R' Us they didn't have any more of those in stock so I had to settle for the books I gave you instead. ;-)
 
[quote author="BlackVault CM" date=1233840953]I've already started teaching my son finance.



Each night, I place these giant headphones on my wife's belly that plays your normal college finance textbooks on tape. Economics, Finance 101, etc.

By the time he comes out, he should have basic finance down. I would expect that he can calculate quadratic equations by then too.

As a parent, it will be crucial for me not to read him books on Winnie the Pooh, though maybe I'll read How Grinch stole X-mas. Instead I will be reading to him books on valuation methods, complex barrier options,

dynamic delta hedging, option hedging, asset price behavior, normal distribution returns, quantitative methods etc...



I want to make sure he really understands derivatives and how to leverage himself 1,000 times over.

That way if I'm successful, I will have created the next Alan Greenspan to fuel the next credit bubble and financial collapse.</blockquote>


I predict, as a bedtime parent reader, you will be much more sucessful than the rest of us at getting him to sleep on time :).
 
[quote author="WINEX" date=1233827374][quote author="High Gravity" date=1233801426]



My mom used to put iron on patches on my Tough Skins pants. The ridicule I suffered at the hands of my classmates because of the cheap pants and patches scars me to this day.

</blockquote>


Wow. I hope you are just being melodramatic.</blockquote>


The scaring is a bit melodramatic, but it is true I was ridiculed for my Tough Skins. All the cool kids wore OP, Calvin Klein, Jordache, Members Only, etc. Kids can be very cruel. I resented my parents at the time for not dressing me properly, it was only later that I understood they were not being cheap, they really could not affford to buy me expensive clothes.
 
[quote author="Anonymous" date=1233884177][quote author="BlackVault CM" date=1233840953]I've already started teaching my son finance.



Each night, I place these giant headphones on my wife's belly that plays your normal college finance textbooks on tape. Economics, Finance 101, etc.

By the time he comes out, he should have basic finance down. I would expect that he can calculate quadratic equations by then too.

As a parent, it will be crucial for me not to read him books on Winnie the Pooh, though maybe I'll read How Grinch stole X-mas. Instead I will be reading to him books on valuation methods, complex barrier options,

dynamic delta hedging, option hedging, asset price behavior, normal distribution returns, quantitative methods etc...



I want to make sure he really understands derivatives and how to leverage himself 1,000 times over.

That way if I'm successful, I will have created the next Alan Greenspan to fuel the next credit bubble and financial collapse.</blockquote>


I predict, as a bedtime parent reader, you will be much more sucessful than the rest of us at getting him to sleep on time :).</blockquote>


LOL! read it the second time to get it. I bet you're right. He'll be like what the hell are you talking about...zzz....
 
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