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Kids Ain't Cheap

But They Sure Are Worth It

What Is the Greenlight Card for Kids?

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If you have kids that are in middle school and high school, you likely feel the need (as I do) to teach them financial common sense.  The hope is that eventually they will be able to move out on their own and be financially responsible.  However, this lesson isn’t quickly learned, and it requires a lot of parental oversight to do it right.  One tool that can help you is the Greenlight Card for kids.

Greenlight Debit Card for Kids

What Is the Greenlight Card for Kids?

The Greenlight Card for kids is a debit card your children can use, but it comes with some amazing parental controls so you can help guide and influence your children in their money habits.

Please note that if your kids have smartphones, there is an app they can use which will show them their balance and chores and allow them to make requests.  However, the Greenlight Card for Kids can be used if kids don’t have smartphones, also.

Features of the Greenlight Card for Kids

This card makes allowances high tech.

Instantly Deposit Money

You can reward your children for chores well done by depositing money in their Greenlight Card.  Within the card app, children can set up different categories such as spend, save, and give.  They can also set up long-term goal categories such as saving for a car.

Parental Benefits

You can help your children manage their money with this helpful card.  You’ll be given real time spending alerts.

Teach your children about interest by giving them interest payments on their savings.  You decide how much you want to give them.

In addition, you can enable the feature that allows them to withdraw money from the ATM and set how much they’re allowed to withdraw.  Or, you can make withdrawing money off limits.

Features for Older Kids

Greenlight Debit Card for Kids

Photo by Stephen Phillips – Hostreviews.co.uk on Unsplash

If your teens have jobs, they can have their paycheck automatically deposited to the Greenlight Card for Kids.  The card can also be added to Apple Pay or Google Pay.

Safety Features

Each Greenlight Card is FDIC insured.  In addition, the card blocks your children from spending money for gambling or buying lottery tickets.  They also won’t be able to spend money at places like massage parlors and horse or dog races, and they cannot get cashback from a purchase.  You’ll get an alert if they try.

In addition, parents have the ability to turn the debit card on or off, should they need to.

How Much Does the Greenlight Card Cost?

The first month is free.  After that, you pay $4.99 for debit cards for up to five kids.  Should you need replacement cards, the first replacement cards are free.

Final Thoughts

The Greenlight Card for Kids offers a way to give your children financial independence while also providing parental oversight so you can help guide your children into financial growth.  This tool is an excellent way to exchange money between parents and kids while having features that let your children grow in responsibility as they grow up.

CIT Bank Money Market Account

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How Much, If Any, Should You Pay Your Kids For Chores?

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Should you pay your kids for chores? The answer isn't always so simple. Here's an idea of when you should and shouldn't.When kids are young there aren’t many ways for them to earn money of their own. Household chores are an easy and accessible way for kids to do so. Unlike an allowance, which I think is something that, when given, should be given out of funds that would already be allocated to the child, earning money from chores is a way of kids to work for their money.

I think there should be a level of expectation being a child who lives at home in terms of contribution to the household. Being a kid isn’t an excuse to not contribute to daily chores. Even at three years of age, my daughter is expected to help clean every mess she makes, as well she helps me with easy tasks like unload the dishwasher or simply putting something in the garbage can when asked. We have friends however, who do everything for their kids.

Children need to understand that running a house isn’t ‘’free’’. There is a lot of work and effort that goes into it and the responsibility isn’t just the parent(s). Everyone who lives under the roof should use their abilities to contribute.

In my opinion there are certain chores should never be paid for. Every child should have basic chores regardless of age. These chores should be determined by the parents, taking many things into consideration, but basics like maintain a clean room, help with laundry (a life skill they need to know) and help with meal prep and cleanup are examples of ‘’chores’’ that are expected, not rewarded for.

If a child is looking to earn money consider making a chore chart. A list of ‘’extra’’ chores, with an associated dollar amount which they can choose from if and when they need additional money.

Examples may include something like:

  • Clean garage- $10
  • Wash mom/dad’s car- $10
  • Weed yard- $20
  • Clean litter box (dump old litter and wash)- $5

These are household tasks that need to be taken care of and give the child the opportunity to do so. Notice there is no simple tasks like ‘’make bed’’ or ‘’put away laundry’’, again these are simple tasks that are expected to be done regardless.

My experience is that too often kids leave home with a diluted perception of how a house is run. So many kids leave home never cooking a meal, turning on a washer, using a clothesline or washing dishes and it terrifies me. Chores aren’t established as a way for parents to have control over their children (though there is some of that too ;)) it’s a way of teaching responsibly and life lessons.

How a family decides to establish a chore system is unique to each family but not having a child do any household chores only does damage to the kid and their future.

Do you enforce household chores? What, if anything do you pay your kids for?

Handling Allowance With My Daughter

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daughter allowanceI didn’t grow up receiving a regular weekly allowance. I can honestly say as an adult that this has played a huge role in the financial choices I made growing up. Since no one taught me, I had no idea how about money management. Sure, I played with monopoly (play) money in grade school for pretend math class assignments, and gladly handed over my pocket change when the credit union came each week to collect our money putting it into a savings account for us, but I really had no understanding of money. Even as I grew up and got my first part-time paid job in high school, I didn’t know what I was supposed to be doing with my paycheques. All I knew was that I was making my own money now and no longer needed mommy every time I wanted something.

 

The Importance of Allowance

For these reasons I personally believe allotting an allowance for kids is important. I plan on implementing a weekly allowance for our daughter when she’s old enough to understand what money is, probably around the age of six to seven. I want her to understand why she cannot  have something other than me just saying ‘no’. I want her involved in purchases that affect her and help make the decision. I need her to understand the importance of savings. All of these things cannot be fully understood with ‘play’ money.

Have you ever tried to play a poker game with fake money? The betting can get ridiculous because you have no real ‘skin in the game’ so-to-speak.

How Much?

Honestly, right now (her being seven months old) I don’t have an exact amount in mind that we’ll give her but it will be a percentage of money we plan on spending on her anyways. What I mean, is that we don’t necessarily plan on creating a whole new section of our budget for kids allowance, rather allocate money to her from money we would have spent anyway (clothing or shoes for her, school supplies etc). This way she can be involved in how her money is spent. As parents we are responsible for spending money on her for the next 18 or so years, why shouldn’t she have some involvement?

One option is giving a weekly amount (say, $3.00 a week to start) and teaching how to save a percentage and budget for things desired. When she gets older maybe we will make her  responsible for handling and helping budget for larger purchases like back-to-school shopping. Whatever option ends up working for us, the key is to have her directly involved in buying items so she can learn to respect money and understand that it is not an infinite resource.

I also don’t want to pay her only when she does household chores which is a common criteria for parents to award allowance. As a member of our family, when she gets old enough, she will have an unpaid responsibility to contribute to our household. Should she go over and above her required chores and do extra, she may be able to make some extra money, but I refuse to pay her for normal expectations.

 

Learn From My Mistakes

When we go shopping I want her to understand the importance of shopping with a list and sticking to it. This will teach her the importance of budgeting and planning. She will learn that if something is not on the list we won’t be buying it today, and if we (she) sees something while we’re out that she may want, we have to make a plan on how to buy it.

These are all tools I wish I had in my back pocket. Not that I grew up thinking money was an infinite resource, but I never appreciated the value of a dollar until I was much older and in a boat-load of debt. Everything I know about money is 100% self-taught. I still have a way to go but my hope is that through allocating a proper allowance and starting early enough my daughter can avoid the same paths I’ve already been down.

If you have kids, do you give them an allowance? How much?

Christmas as a Catalyst for Money Talk

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Christmas is a good time to teach kids about moneyChristmas is a season most often related to parties and gift-giving. This is especially true for the little ones. If you have kids, and young kids like I do, you will hear a non-stop stream of Santa wishes the moment you put your tree up. I was thinking about this as I was decorating my tree with my son and daughter and I thought now would be as good a time as any to start teaching them about money.

To be honest, this was a tough one for me There are so many schools of thought about how to go about doing this. When should you give your child an allowance, how much should this be, should you tie this to chores or not, and the list of questions goes on and on. I did some research and decided to try to combine a lot of what I thought made sense to me and I could actually apply.

Teach Your Child The Money Basics

Carol Wilson, a financial adviser from Salt Lake City, says that children learn about money the moment you start taking them to the store.

Your toddler begins learning about money from what she observes during visits to the store. When she reaches age 3 or 4, you should be explaining some of your shopping decisions: ‘We’re buying peaches today because they’re on sale,” or “We’re using coupons from the newspaper to help pay for our cereal.”

I found this to be so true. I’ve been taking my kids to the stores with me as soon as they were allowed by their pediatrician to venture out into the world and I must say my 5-year old knows all about buying food items, our grocery schedule, the fact that when I say “we have to buy more bread”, he knows that means a trip to the grocery store to pick out a loaf which will be paid for at the cashier. And my 3-year old is not far behind.

Now, I know that they know what money is and that it gets us goods and services (ok, services is stretching it, but you get the drift), I’ve decided to start teaching about the value of money. Ok, I’m going to do my best. This is not the easiest topic to teach.

Tips in Learning About the Value of Money:

Here are some tips I think are constructive and realistic when teaching your kids about money

Identifying money. Make sure that she knows the difference between a nickel and quarter.

Currency is different here in Manila but I get the gist of this point. My son knows the difference between all the bills and the coins but not the difference in values yet. Hmmmm….something to work on.

Making change. Make sure that she knows how to present enough money to cover a purchase and to count her change.

Ok, my son and daughter have very recently taken to buying a local tapioca and soy drink. A vendor passes by our house every morning and they come running to me for coins to make their purchase. This is a simple way to present covering a purchase and getting change. I’m happy about this.

Being responsible for money. If she loses the dollar that was in her pocket, she has to know that it’s her loss (you won’t replace it). This will teach her to be more careful in carrying money.

One morning last week, I gave my son some coins to buy his current favorite tapioca-soy drink. But the vendor didn’t come around that day and I didn’t get my coins back. The vendor did come the next day though and, like clockwork, both my kids came runing into the room to ask for change. So I asked my son where yesterday’s change was and he shrugged and said he dropped it. I told him that money was valuable and that he had to take care of it or he wouldn’t have any the next tiome he wanted to buy something. He didn’t get his drink that morning and seeing those big, fat tears almost made me cave. But he hasn’t misplaced his coins since. I’m hoping the lesson wasn’t too harsh.

Understanding that things cost money. From the candy she eyes at the supermarket checkout counter to the premium movie channels on TV, she must know that nothing comes free.

Well, the way I handle this is, every time we go out, I tell my kids that we can make 1 minor toy purchase only (if any). Antyhing they want after that has to go to the next trip becuase I only bring enough money for 1 toy each.

I also try to teach them about caring for their toys becuase these cost money and can’t easily be replaced. The verdict is still out on both attempts to teach my young ones about nothing being free.

Handling an allowance. Make sure that she learns to live with the allowance she’s given and to meet any expectations for it that you might set. For example, this may include a modest savings plan to pay for things she wants.

OK, I’m not sure about this part. I’m honestly not sure about how to introduce an allowance. So far, I’ve tried to connect chores to fun activities and rewards (rewards sometimes being the pride in a job well done). I’ve read that it is ok to connect chores to payment too as this will teach kids that they have to work for money. I am thinking that it might teach them that the only value in a job well done is its monetary equivalent. I haven’t decided. I do know I am going to give an allowance when they hit elementary but i’m still fuzzy on how to teach this. Suggestions anyone?

I hope I’ve listed down some helpful suggestions for getting started on the money lesson. I guess at the end of the day, I really want them to learn that they need to understand and value money, that it IS important, but there are other important things too like going for excellence, and being cautious, etc. This is a work-in-progress for me so any other tips are highly appreciated.

Have you explained money and value to your children? What prompted you to discuss it?

Teaching Children About Money

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kids and moneyTeaching our children about money may sound easy to do but many times it is not. As our children get older they will begin to understand more so don’t give up and think your children will always think money just appears.

When children are about 5-6 years old they seem to love collecting coins. This is a great time to start the “piggy bank” or “money collection”. As they get a bit older they begin to understand that each coin has a different value. And when theses coins are added up it is enough to buy something that they have been wanting.

So how do we as parents begin to teach them the value of money and how to save? This is not an easy task at times but it is a very important lesson. Teaching our children to save for a certain item not only teaches them self discipline but also allow them to set goals.

Allowances and Chores

In many households the parents reward for chores that are completed by giving the child an allowance. By earning the money the child feels good about the accomplishment and then is able to save the money earned to buy something.

If the child wants something of a larger value the child will then have to save for it. This may mean more than a week worth of chores. And be warned, there are those that do not want to wait and will asked to be paid ahead of time. What we tell our children is that when a job or chore has been completed that is when they will receive the allowance. We do not pay for chores that have not been completed yet. By doing this we are teaching the child that things have to be earned. There is something about actually earning what they have bought that makes the child seem much happier with the item when they are finally able to buy it.

Saving Money

The next lesson is teaching about saving money. How much is the right amount to save? This is up to the individual parents. Some teach their children to save more while others just have their children put away a small amount to get the hang of saving up money.

When children get a bit older and have small jobs they are then able to set bigger goals. As they get older the “toys” also become more expensive. What was once a small truck or doll now may become a cell phone or video game. We as parents know just how expensive the “toys” can get.

It takes time to teach our children about money. With time and patience they will be saving money as well as setting goals for items that they want.

Do you have any ideas on teaching our children about money that you have used or are planning to use?