We have never given it a name, but we do the same thing. In a few weeks, for example, when it's time for back-to-school supplies, I'll give each girl a "bonus" along with her allowance. Each girl will be expected to buy her own back-to-school stuff with that "bonus". And though paying cash is their only option right now, we'll discuss the other options that they'll have as they grow older.disneysteve said:I sat down with DD last year. We do little "Financial Academy" sessions. She really gets a kick out of them. I made up a hypothetical shopping trip and discussed options for payment: cash, check, debit card and credit card. We went over the pros and cons of each. And I particularly focused on the CC. I used an online calculator to show her the effect of not paying the full balance in full and how much interest she would pay and how long it would take to repay the balance if you just pay the minimum each month. It was quite eye-opening for her. I even heard her telling my mom about it a couple weeks later.
I think I've scared my oldest daughter though. She already says she's never going to have a credit card -- she says she doesn't think she has the self-control.