When LatteGirl was small we used to have to keep her away, either entertained in the back yard, or ship her off to grandma’s when we had a yard sale. The reason being that she never wanted to part with ANYTHING! Rational explainations didn’t help, becuase she always had a counter. Like if we would say, “But honey, these are BABY clothes and you are too big for them” she would reply, “But I want to save them for MY daughter.” This of course made it difficult to get rid of anything, along with bringing on the anxiety of my (at the time) 3 year old thinking about when SHE would have a baby.
But apparently times have changed. This spring we instituted an allowance. Along with it came some rules as we attempt to teach her better money management than most people have today. We decided on 6 dollars a week. Now this may sound like a lot for a small child, but like I said, with the money came rules. $2 per week goes to her LONG TERM savings (in the bank). $2 per week goes to her “short term” savings, a bank which I bought for her from INGDirect which acts like an ATM (it even has a little ATM Card), and keeps totals for her of how much she puts in and withdraws. This short term is for things like toys she may wish to purchase or accessories for her bike, etc. The last $2 is her “pocket” money… lolipops, snacks, Ice Tea from the store (as opposed to what we have in the house) anything that is not part of the “normal” shopping comes from this fund.
She has thus far taken to this quite well. She understand that she has to save for things, and has at times passed on things that she wanted from her “pocket money” so that she could add it to her “short term” to get a toy or something else a bit quicker. Now don’t get me wrong, she is still a bit impulsive, and as soon as she thinks she has enough for something she wants to go spend it, so there is still work to be done, but I think for six she is quite controlled… so far.
But now, her entrepreneurial spirit is also kicking in, along with the desire for more cash. First she decided that she wanted to have a yard sale, and sell off some of the toys and clothes she either no longer wants or need, in order to turn it into “more money for the things I want.”
She did not stop there however. In one of the catalogs of “Summer Stuff” that we had gotten in the mail she spotted a lemonade stand, and the wheels started to turn. She asked Mommy if she had enough in her short term to purchase the stand. While pointing out that she did, but that it would be virtually depleting her “account,” she let us in on her plan. “But it will be hot out when we have our yard sale. People will be thirsty. And when they come to buy our stuff we can also sell them lemonade.”
I am not sure if I should be proud… or scared.