My husband and I had to redo our budget this year when he lost his job and found a new one that pays less money. We are happy that we did since we saw how much money we were wasting in certain areas of our budget. And as we made the necessary adjustments we realized that we were never taught how to budget and plan for our savings. This is a mistake that we do not want to make with our kids. But where do you start with little kids and how do you teach them about money?
And that is where The Money Smart Family System by Steve & Annette Economides comes in. Steve and Annette have created a great system to teach their kids about money. And they have a way to help you through all the money pitfalls at every age, even for my little kids. They start with giving their kids an "paycheck" each week based on performance. With their weekly paycheck they are instructed to spend 70%, save 20%, and give 10%. I love that the system teaches kids about saving and giving from the beginning.
At first I thought that the system paid the kids too much. But then I read what the kids were responsible for buying and I realized that I probably spending more on my kids than they do. Plus, we all know that we take better care of things when we buy them ourselves. My daughters loose their hair bows all the time. They take them out and leave them wherever they are at the time. I'm willing to bet they will take better care of them when they have to fork over their own cash for bows.
My favorite part of the system is that they do not pay their kids for outcome, but on effort. I love this concept! I worked so hard on math in school, but I never finished the year with a grade higher than a B. With the money smart family system, you recognize that each child is an individual and they are payed based on their effort and attitude. And let's face it, we all know that sometimes kids need an incentive for having a happy attitude when doing homework and chores which is why the attitude part is so important.
I loved this book and I think you will too. It teaches your kids about money and how to budget for things that they want. The system also teaches your kids how to be responsible with money and plan for the future so they are money smart adults. There are some parts of the system that don't work for me, but we are going to implement the main points of the system in our home.
Disclaimer-I received this book as a member of Book Sneeze's blogger review program. All opinions are mine and no further compensation was provided.