Okay internet, here's your chance...tell me what you think!
It's Christmas, birthday, Valentine's Day, Easter, or just because I like your kid and I want to give him money, so I send a card through the mail. The card comes to your house, with a few dollars, or could be $20. What, as a parent, do you do when money is sent to your kids?
I've heard of some parents that save it ALL for college.
I've heard of some parents that let the kids spend it ALL.
I've heard of some parents that save it in a bank account, for now but, plan to let the kid spend his money later. (not the saved money but new money as it comes)
I've heard of some parents that save half and let the kid spend half.
I've even heard of some parents making siblings share it. For instance, 1 child has 1 father, the other child a different father - child 2 has to split all of his monies with child 1 as she doesn't receive monies from her father's family. I also think this is HUGELY unfair - by the way!
Leave a comment or you can email me what you think.
We currently put all of Jacob's money in a savings account and when I get enough, I make a deposit into his 529 college savings. When he gets older and understands buying things for himself, or things he wants, we'll let him spend his money as he wishes.
**Please, really, I'm just curious what other parents do. I'm not saying you can't send money to Jacob, or that I don't know what to do with it if you do, or that we don't appreciate your thoughtfulness, or that you are wrong for doing what you do. I'm simply curious what other moms do.
This is an interesting topic, I'd also like to hear what other people do. Keaton is obviously too young right now so all the $ we have rec'd for him is going into his savings account. I'm assuming once he is old enough to understand "the value of a dollar" (as my mom would have said to me!) we'll let him decide what to do with it. Or maybe it will all go towards college - I don't know.
ReplyDeleteWhen he gets a little older though my plan is to have 3 jars set up designated as follows: spend, save, donate. I'd like to have him divide the money he earns through chores or is gifted to him into thirds, 1/3 to spend however he wants, 1/3 will go to savings, and 1/3 will be donated to charity. I'm hoping it will help him learn to manage money and the importance of helping others. Don't know if this will work or not, but that's my plan right now.
We let our kids spend their money unless it is a crazy amount clearly meant for savings. Our family buys savings bonds since I never had any and my brother did. When he was old enough, he cashed it and got TONS of money. So lots of times, large amounts of money (anything above $10) comes in the form of a savings bond. But anything less gets to be used as wanted. Arlington is a saver, Maggie really thinks about what she's spending her money on, but usually spends it just the same and Gabe has no problem finding ANYTHING to spend his money on!
ReplyDeleteMy issue with putting everything in savings is that many people send the money in leiu of a gift with the intention of the kid picking out their own gift. I think if you know the intention, you can make the right decision...although like Kate, when they were babies getting money, I knew it was meant to go into a savings acct!
Aubrey, I think you bring up a good point...when the money is obviously given in lieu of a gift it does makes sense to allow them to spend it. Especially if it is something like a birthday gift and in the $10 range.
ReplyDeleteI guess when I was thinking about my 1/3 division I was thinking of a time when our nephew rec'd a bunch of money for his first communion and his mom said she would allow him to spend some of it and the rest would go to savings. So I think you're right, it kinda depends on the circumstance. But you have me rethinking my strategy, maybe that will just be used for chore money.
But then that starts awhole new discussion because I'm not sure how I feel about kids getting paid for chores in the first place. I kinda think kids should have certain responsibilities that they need to do as a member of the family. But somehow I think it is important for kids to learn how to manage money. So all of this to say I have no clue what I'm going to do!!
And now you opened another whole can of worms, Kate. I too, believe that there should be chores that are just done, not with any reward or payment - they're responsibilities and we don't always get paid in $$ for those. Though, I still do like the idea of an allowance - I don't wholly feel an allowance should be in response to chores or behavior, yet I still feel it should be something to be taken away for not completing chores or for unacceptable behavior. Now that brings up another question, do I just give him money every week - for nothing? That doesn't seem right either!
ReplyDeleteNow, I do like the 1/3 idea to be applied to an allowance and large sums of money. I really wish my parents would have taught me to be more of a saver. I'm rather like Aubrey's Gabe. I'll spend it on anything and I don't want Jacob to learn that from me. It's easier for me to preach it rather than practice it!
I do agree with Aubrey as well, in the 'lieu of a gift' thing. I'm still putting that $$ in Jacob's savings for now. Once he's a little older and starts understanding what it means to have his own $ then he can spend that for himself. Of course, whatever big money gifts (not that I'm expecting any) will go into savings in entirety.
I do wish though, at this age, rather than send large amounts of $$, I'd like to see more people give savings bonds. Jacob has one and I know I could buy more but I just dump his cash gifts in his 529. The only bad thing about the savings bond - is needing the soc. sec. #. I'd like to give them too but, I hate to ask people for the kid's #.
Thanks for your answers, girls. I've really enjoyed hearing your thoughts and ideas!