Teaching kids the value of a dollar

[dpswift]

We have a state fair near us for a week and a half each year. My kids loved going multiple times each year. So to avoid problems I would give them each an allotted amount of money each day. They could spend it or carry it over. It worked very well. It also saved me from the old he had ice cream why cant I.

 

[sksjasams]

You have to think about the extent to which you will be able to accept any bad decisions that your children make within their budget. If a child decides not to buy a coat or new shoes, can you live with them being cold or wearing ragged old shoes? If they haven't saved enough for school supplies towards the end of the year, what will you do?

I couldn't live with this plan. There are certain necessities that it is my responsibility to purchase for my child and that includes basic, weather appropriate clothing and school supplies. If my child wasn't able to or didn't want to buy those things, I'd still have to buy them. I think helping your child keep track of what was spent is a good idea. I would not let my child make financial choices if they couldn't live with the consequences because I am ultimately responsible for the consequences. That is the difference between a child and an adult.

Very well said, and I agree!

There are too many what ifs, and things that come up during the course of a school year.
For example...Say one of your kids does very well and spends the money making wise choices...but then shoes or clothes are outgrown suddenly, or teacher springs a list of extra supplies on them, or zipper breaks on the winter jacket, or winter glove is lost. You would have to replace them.
Then say one of your other kids has done well too, but spent less, and those situations happen. Would you make them replace the items or would you replace them like you did with the first child?

At least for me, there are too many variables, and I would not do it for stuff they need. There must be another way to teach them about budgeting without handing over all of the responsiblity and consequences for needs to them.