How do you teach your children about money? Do they request a cash advance on their allowance because their wants outweigh their weekly earnings? The better question her would be, do you give them the advance? Planting the financial awareness seed early on is what helps to build their financial future.
Does your child get a cash advance just for asking?
If your child receives money each week, yet continues to overspend, what lesson gets taught by handing out extra or an advance on their next allowance? My mom used to joke about the money tree in the back yard. As a child, I grew to learn that asking for money was a waste of breath. I had to earn the extra before I received it; a bone of contention between my parents and I. Everybody else’s parents gave them the money to go roller-skating each week, why did I have to earn mine? I got pretty good at washing windows and cleaning out the garage in order to earn my trips out with friends. I did not like having to earn my money, but it sure did help me in the long run.
My mom was right, money doesn’t grow on trees. Since I learned that lesson early on, I had a smooth transition period when I moved from my parent’s home to my own apartment. Long before I knew how to add and subtract money in school, I understood that money was earned. I wasn’t going to get what I wanted until I earned it. I can appreciate my parents’ take on finances as an adult and hope that I too can instill the same concept into my children. Inflation has my children earning more each week, but the chores are still a prerequisite to payment.
Once a child learns how money works, there is an internal conservatism which blooms. My children know that in order to get new “stuff” that they have to save their money. My son can spot a coin on the ground about 50 feet away. He scopes out every parking lot and often has his head down in each store. I would bet so far this year he has found over a dollar in change along his path. He has a mission. New games for his electronic devices are important to him.
I gave him a cash advance once. His game was on sale for a really good price, so I let him buy it. He needed to borrow $3.74 from me and promised a thousand times he would pay it back. I remembered wishing my parents would do that for me as a child, so I caved. He got his game. The instant gratification was intoxicating for him. He got home did all his chores and homework in lightning speed then spent his evening playing with his new game. He was the happiest kid until allowance day came. He watched his sister put her allowance into her bank and then watched me put his back in my wallet. Oh, the tears! It wasn’t fair, how could I do this to him? When he calmed down we talked about his cash advance and how he promised to pay it back. He didn’t like it, but knew he had no choice. I heard a few grumbles that week when his school was selling a special treat which he now had no money to buy it with. I got one of those “looks” but he knew not to ask, he decided that he would earn his money for the next purchase. I believe my son learned a valuable financial lesson by obtaining a cash advance and having to pay it off on his next payday.
