Our boys actually learn about mortgages and interest by about age 8. This happens because they want to borrow money or buy something before they have enough money saved, and we teach them about 'thank yous', which are simply interest.
This all began when our oldest was 8 and his daddy worked away from home. He knew it was about bills. He didn't like that his dad had to be away to pay the bills, so this led into a conversation about money and saving your money wisely.
I told him that when you borrow $1 from the bank, you have to give back the $1, plus you have to give another $1 as a 'thank you' for letting you borrow.
They learned really early that you would be nuts to want to pay these thank yous!! And so we have never had an argument regarding their 'House Fund'. It is untouchable - either for future career, or house. If they want a car it gets paid for out of their Spending.
This all begins by about age 11 when they can work more fully for their dad. At that time they put 10% in to Housekeeping (house expenses to help the family), 10% to Tithe (Church and Charity), 30% for Spending, and then 50% for House Fund. Before age 11, they still have to Tithe, but do not have other bills.
In this manner, though we have a large family, they will leave home with at least $15,000 towards their future.
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3 comments:
I love this idea! Awesome.
That is an awesome idea. When I started school me (and my parents!) wished that we had started saving early, as I had nothing aside from what I was making from my part-time job!
Great ideas Justine! tks
Noelle
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