Smart Reasons to Save, Use and Invest Money

Spending Money On Kids

Today my son asked if he could spend $2 to buy special armor for some free online tank game.

Since I knew it was a free game, I instantly shot down that idea, actually making him feel a little bad in the process.  While I didn’t mean to make him feel bad, sometime the way my mind works, when it get on a topic, it flushes out all the details in a combative manner.  Of course I wasn’t yelling, but I think there was anger in my voice because of the FREE game would cost my son or me money.  I was mad at the game creators not my son.

It’s kind of ironic really…  in 4 or 5 more years I’ll be buying him a car (used of course), but here and now, today… I’m complaining to him about spending two dollars.  Ten minutes later, I explained to him that since he has his own business submitting blogger articles to social engines that he could use the paypal account that we’ll setup for him to buy that two dollar free armor (yes I’m still a bit upset).  After all, I give him an allowance so that he learns to spend and save money in an intelligent way, and to date, he has done very well!

Rich Kid

If you’re a frequent reader, you know that I recently bought my son a laptop, so you might be thinking I’m over reacting…  But with the laptop, I knew he would use it for many things, so that seemed like a smart way to spend money, versus armor that if he got enough points by playing he could buy without spending real money (the money he would spend would give him points so he could buy the armor early).

Okay you’ve read my situation, now for a money tips with kids.  Much like adults, if the instant gratification factor is ignored, a kid (or person) will find that the item they wanted to spend money on will lessen with time.  So I’ll wait until next week, and then if he still says he wants to spend the two dollars I’ll let him.  But honestly, this will probably be the last I hear about the matter.

Time and desire are inversely related.  The more time runs, the less desirable an object becomes.

Cheers,

Mr

13 Responses to Spending Money On Kids

  1. You have done a great job teaching your kiddos about money. If only all parents were so diligent, our country might not be in the economic mess it is in.

    Goes to show that money lessons are everywhere, not just in the big ticket items.

  2. I think that makes sense. If he has to spend his own $2, he learns what it is worth so when he is confronted with larger purchases in the future he can make good decisions.

  3. My children had to save their money to buy their first car. I covered the insurance because it protects me. I gave them an incentive to save by matching their savings dollar for dollar. Their savings started early because they were required to save 50% of their allowance.

  4. I don’t think there was anything wrong with you telling him “no.” I would definitely explain to him the silliness of it. However, is that not we do as adults when we go out on a buy Starbucks or something equally as silly? We have to make sure we’re not hypocritical when we teach kids important lessons. But I agree with you 100%! He’ll eventually understand.

    • I’m guilty of buying lattes every other day. I need to correct that action because the benefit doesn’t justify the cost.

      Perhaps I need to look at my expenses every now and then too 🙂

  5. This is my weakness, spending on kids. I can be fairly conscientious about most other areas, as anyone reading my blog would imagine. But I have a hard time saying no in some cases where I probably should. I have to keep reminding myself that it’s in a kid’s best interest to truly know the value of money. It doesn’t grow on trees, as my dad said!

    • You and I parallel each other on that the spending on kids topic. I’m my one financial weakness

      Kids enjoy the little pleasures in life so much better than we do as adults. I think I know that I get a lot of joy for the money I spend from my kids, so that makes it hard.

  6. My daughter is 6 and I’m not sure when I would buy something like that. It does become necessary at some point because computers are such an integral part of our lives. I just don’t want the laptop to lead to isolation for our kids. We have so much fun with them now and I think that keeping them engaged is our insurance they won’t be cooped up in their rooms away from us. I’m sure that time will come…