Posted by: Jeff Rose | October 27, 2008

Monetary Incentive For Kids

A couple of weeks ago I was watching Real Housewives of Atlanta……Wait. Did I really just admit that? Okay, to quickly protect my male ego for a bit.  I kind of got into the original cast from Orange County for two reasons: 1. I used to live in Southern California and it’s always nice to see the west coast again.  2. Crap.  I only got one reason.  Oh well.  Male Ego is bruised but not broken, I’ll move on.

Anyway, on the first episode, one of the Housewives sons was celebrating his 9th or 10th birthday.  The dad, as a gift, gave his son a $1,000 check. (I think I got a nice crisp $20 bill and a Jose Canseco rookie card on my 10th birthday).  The interesting part was that the check was not for the son to spend, but for his son to make his very first investment.  Is that a novel idea?  Perhaps.

As I witnessed that I pondered if that was something that I would do for kids.   I’ve often considered many different ways that I can teach my kids basic money principles and how they make money from money.  While I like the Housewives Dad’s approach for his son, my one concern is how the son is going to view the money.  Will he value the gift as a golden opportunity, or will be just gamble it with the thinking of “Oh, well.  Dad will give me another thousand bucks anyway”?

Personally, I think that there has to be some balance.  I’m sure that the dad will guide his son in helping make his first investment.  I’m sure that the experience alone will prove to be a valuable one to the son as he follows in his father’s footsteps.  All in all, I give the Housewives Dad two thumbs up for his attempt to teach his son first steps into accumulating wealth.

Do you have a story or example of how to teach your kids the basics of money principles?  If so, do share!

Also, check out other bloggers:

Moolanomy: Teach Your Children The Four Pillars of Money Management

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Responses

  1. I don’t understand why you aren’t coming up in my Google Reader… Oops I think I might just have figured it out! Did you see I linked to you in my post about the hayride? Promote Promote Promote!


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