Friday, June 5, 2009

Kids Wealth Program

Summer has always been a time for us to learn new things. Potty training and learning how to put on his own clothes were big ones. This summer we are beginning is Kids Wealth. Samuel turns 6 in July and it would probably be the time we start an allowance. This is different from an allowance. He got his first Kids Pay on Monday and is now learning the painful lesson of choices. It's awesome. Here are the basics:

  1. Determine how much you spend on your child's wants each month. I did not include college funding or birthday and Christmas gifts. I did include souveniers when we go on vacation, his weekly treat from the grocery store, the money he puts in the missionary globe at church, fast food when he is the only one who wants it, fun books, movies, etc.
  2. Divide that amount by half and make that the "Kid's Pay" which is paid out monthly. You still get some discretionary "treat your kid" money.
  3. Stop saying "no" all the time and let your child make their own decisions and learn consequences of those decisions.

The Kid's Pay is divided into different "accounts", each one having it's own color-coded wallet. The wallets are 30% to Wealth, 20% to Plan, 20% to Learn, 20% to Fun, and 10% to Angel. This next part is a description of each account.

WEALTH - The Wealth Account is your child's long-term investment account. The program talks about "paying yourself first" but because I believe you pay God first, I just altered this aspect. When enough money has accumulated, you open a savings account and eventually an investment account. They don't touch this money ever, just watch it grow.

PLAN - The Plan Account teaches your child how to set a goal and develop a plan to achieve it. This allows them to plan for more expensive items using their own money.

LEARN - The Learn Account reinforces that learning is a lifelong precess worth investing in. This money is for books, software, museums and any other educational activites. This should be spent each month.

FUN - The Fun Account is your child's monthly fun money to buy things they want. Kids learn to make wise spending decisions as they learn to live within a budget. This has already come into play a couple of times this week when Samuel asks for something. So far he has not spent his money because each time I tell him how much something costs, he decides it is not worth it! This money should be spent each month.

ANGEL - The Angel Account should be spent each month helping others, giving to church, charities, benefits, or other worthwhile causes.

I had signed up for their e-mail list long before I purchased the kit. It sometimes goes on sale, which is when I purchased it.

1 comment:

  1. That sounds like a great curriculum addition. I guess one is never too young to learn that!

    Thanks for stopping by my new blog!