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How To Teach Kids About Money

April 10, 2021 By: Sweet Frugal Life13 Comments

Object lesson to teach your child financial responsibility.

As parents, we all want our children to succeed in every aspect of life.  One of these hopes for success is wanting them to succeed financially.  I truly believe if we can learn how to teach kids to manage money teach our kids smart money skills when they are young, they will be much better off financially as adults.  I am excited to share this great object lesson to help you know how to teach kids about money.

We talk to our kids about money constantly.  We give them chores and an allowance to help them learn how to save, work and spend wisely.  But, I wanted to teach them a little more about the money world as adults.

I began brainstorming ideas and came up with a game plan that ended up having a greater impact than I ever could have imagined.

  • Related:  Teach Kids About Money With The Money Confident Kids Website

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Kids Money Object Lesson:  How to Teach Kids to About Money

To begin our money object lesson we announced to the kids that we were having a family meeting and that they all needed to come join us (cue groans).  I ignored their sour face expressions and got started with our plan.

Phase 1:  The Marshmallow Bank

We started the lesson with what I called “The Marshmallow Bank.”  The point of this was to teach the kids how money grows when invested over time.

First, I gave each of the kids 5 marshmallows.  I told them that those marshmallows were theirs to do whatever they wanted with.  But, if they wanted to put the marshmallows in the marshmallow bank the marshmallows might grow.  I reminded them that the more marshmallows they added to the bank, the more they would probably get in return.

My 12 year old and 9 year old decided to put all five of their marshmallows into the marshmallow bank.  However, my 5 year old chose to eat three of his marshmallows and put the other two into the bank.

The “bank” was in my closet.  We left them there while we moved onto Phase 2!

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Phase 2:    Real Life

For Phase 2 I really wanted to give my kids an understanding of exactly where mom and dad’s money goes each month and WHY we just can’t give them every.single.thing. they ask for!  I truly wanted to help them understand adult financial responsibilities.

To prepare for the lesson, I got enough cash to resemble how much money my husband earns in one month (I did this during the first of the month when I had a bunch of cash on hand from my cash envelopes).

I obviously didn’t get out the EXACT amount of money that my husband earned, instead we pretended that a quarter was $25, $1 was $100, $5 was $500, $10 was $1,000 and $20 was $2,000.

Next, I filled three bowls with snacks.  The first bowl had cheerios in it and a $50 sign, the next bowl had fruit snacks with a $100 sign on it and the last bowl had a few mini candy bars in it with a $500 sign.

I gave the kids all of the “money” that our family has to live off of for one month.  I explained that after they paid all of their monthly bills than they could use whatever money is left to go shopping at our “store.”

The kids were SO excited about their money and the possibility to get those candy bars.  All of those bills looked like a gigantic wad of a sum to those three young kids.  They could not wait to buy out the entire store!

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And then the bills began…

Now for the bills….(why must there always be bills to pay?!?!).

We listed off every bill that we have to pay each month and how much that bill cost us.  As we listed off each bill, the kids had to pay us from the money stash we had previously given them.

We included everything!  They had to pay for life insurance, car insurance, retirement savings, college savings, sports and piano lessons.  They paid for electricity, groceries, car repairs, and a few date nights.

We had them put money into their emergency savings account.  If it was on our real budget, the kids saved for it.  As the huge wad of cash slowly dwindled the looks on the kids faces kept dropping and dropping.

Once the bills were all done being paid my daughter exclaimed, “But where did all of our money go?!?!”  The kids had about $10 leftover, an equivalent of $1000.  Not enough to buy each of them one of the coveted candy bars.  They had to settle for a few fruits snacks and cheerios.

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Phase 3:  The Lesson

At first the kids were a little upset.  They were asking questions like, “So does this mean we don’t have any money?!?!”  and “I don’t understand where the money went.”

We explained to them that we do have money.  We have enough to pay for everything in our budget, everything that they had to pay for.  We have enough for the soccer camp, the piano lessons, food on our tables, the necessary clothing and occasional fun family activity.

But, we do not have enough money for ALL the things.  We talked about why and how we make a budget each month, how some months we might budget for a fun family activity and another month we will budget for new school clothes.

As the conversation continued I could see the understanding start to set in their eyes.  They began to realize the importance of a budget and why they are told no to some of the things they ask for.  They learned the importance of saving money each month and budgeting for the many bills that come with being an adult.

Phase 4:  Investments

Now, it was time to check how our investments were doing in the “marshmallow bank.”  When I went to go get the marshmallows I tripled the amount of marshmallows each of the kids had in their bowl.

My 12 and 9 year old ended up with 15 marshmallows and my 5 year old had 6 marshmallows.  My 5 year old was a little disappointed when he saw how little marshmallows he had compared to his two older sisters.

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This gave us the perfect moment to explain to the kids about investments, and how, if done wisely your money will grow.  We demonstrated how the more money you invest, the more money you will earn in return.

In Conclusion

I was so very happy with how this money lesson turned out.  My kids really seemed to understand and grasp what we were teaching them.

The conversations we had throughout the lesson were very real and mature and I am hoping this is something my kids will remember as they grow up and begin making their own personal money choices.  And once we were all done we totally let them have a few of the mini candy bars…..just because I try to be a nice mom.  Sometimes.  😉

 

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Related Articles:

This is What Happens When You Give a Teen an Allowance

Teaching Kids to Help with Family Chores: Including free chore chart printable

A Financial Tale of Two Sisters

 

I hope this article helps you know how to teach kids about money.

 

 

How To Get Free Stuff On Your Birthday

April 6, 2020 By: Sweet Frugal Life2 Comments

Places that give you free stuff on your birthday.

Today just so happens to be my birthday!  Yay!  Happy Birthday to me!  Birthdays are so fun!  But!  They are even MORE fun when you figure out how to get free stuff on your birthday!  This week, my email inbox has been flooded with birthday freebies and coupons and I am excited to share with you all of the places that give you free stuff on your birthday.

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How To Get Free Meals On Your Birthday

First up, let’s talk about free meals!  Here are a few of my favorite places to get free meals.  They all require signing up for their email list, which is so quick and easy to do!

IHOP

Sign up for MYHOP to receive free pancakes each year, and to be the first to hear about other deals happening.  This makes the best birthday breakfast!

Tucanos

When you join Club Tucanos you will begin receiving special offers in your inbox, but my favorite is the free meal for your birthday month!

Firehouse Sub

Another great birthday freebie meal is from Firehouse subs.  All you have to do is sign up for Firehouse Rewards and you will be sent a coupon for a Free Medium Sub every year on your birthday.  Yay!  You don’t even have to use it on your actual birthday!

Rainforest Cafe

Sign up for the Rainforest Cafe Club and receive a free $25 welcome gift AND a $25 gift on your birthday!  This is such a great deal!

Black Bear Diner

You can also get a free birthday meal AND welcome meal from the Black Bear Diner by signing up for their eclub.

Bd’s Mongolian Grill 

Join Bd’s Mongolian Grill and receive a free $5 off gift and a Free Meal on your birthdays!

Ruby Tuesday

Signing up SO Connected with Ruby Tuesday gives you access to free deals, and your choice of a Free burger or Garden Bar entrée on every birthday!

Benihana

You can get treated to a $30 gift certificate to Benihanas every birthday when you join their Chef’s Table list.  This is a great deal, and you are able to use the certificate anytime within 29 days of receiving it.

Dennys

Get a free Grand Slam meal on your birthday at Denny’s Restaurant.  You don’t even need to sign up for anything, just let your server know it’s your special day.

Buffalo Wild Wings

Join the Buffalo Wild Wings rewards program and get free buffalo wings during your birthday month!

 

How to Get Free Dessert On Your Birthday

And now, for my favorite part of a birthday, the dessert!  Here are a few fun birthday freebies for you to enjoy!

Marble Slab  

Earn points and a birthday freebie from Marble Slab when you download their app.

Dippin Dots

Who doesn’t love Dippin Dots?  Sign up for their email club to get coupons sent to your inbox, including a birthday freebie!

Sprinkles Cupcakes

One of my favorite birthday freebies is from Sprinkles Cupcakes!  All you have to do is join their Sprinkles Perks program to start earning rewards.  The more you spend at Sprinkles throughout the year, the more free cupcakes (up to a bakers dozen!) you will get on your birthday.  

A&W

You will be treated to a free A&W Root Beer Float when you sign up for the A&W Mug Club.

Krispy Kreme

Sign up for Krispy Kreme rewards and you will be able to get a free doughnut and drink during your birthday month!

Jamba Juice

Start earning rewards by joining My Jamba, once you have at least 15 points you can get a free birthday smoothie!

Red Mango

You can get a $5 reward every birthday when you sign up for Red Mangos Club Mango program.  It also includes other perks, which I love!

Del Taco

Get two free tacos for signing up with Del Taco AND you will also receive a free birthday milkshake each year.

Orange Leaf  

Join Orange Leaf to earn points and rewards and $3 off on your birthday!

Baskin Robbins

Enjoy a free scoop of ice cream for your birthday from Baskin Robbins by signing up for their Birthday Club email list.

La Madeleine

Download and sign up for the La Madeleine app and you will get a free pastry or piece of cake on your birthday!

Starbucks

Become a Starbucks rewards member and you will get a free drink or food item of your choice on your birthday.

Auntie Annes

Download the Pretzel Perks app to get a free birthday pretzel from Auntie Annes.

Edible Arrangements

Edible Arrangements offers a great birthday freebie!  Just sign up for their email list and you will get a box of chocolate dipped fruit on your birthday.  It’s a $29 value!

Perkins

Join the MyPerkins program to receive coupons and special deals throughout the year and on your birthday from Perkins.

 

Places That Will Give You A Free Coupon On Your Birthday

Do you love getting a surprise for your birthday each year?  Because I sure do!  Here are a few places willing to send you a free surprise birthday gift each year.  Sometimes it’s just fun to not know what you are getting!

Rodizio Grill 

Sign up for Club Rodizio and Rodizio Grill will send you a surprise coupon on your birthday.

Baja Fresh

You will get a free birthday surprise each year when you join Club Baja.

Marie Callenders

Receive free birthday coupons for signing up to the Marie Callender’s E-Club.

The Melting Pot

Join Club Fondue to get The Melting Pot coupons sent right to your inbox.

Texas De Brazil

Texas De Brazil will send you free surprise coupons on your birthday and on your anniversary when you sign up for their eclub.  Even more freebies!

Pretzelmaker

You can get a free birthday surprise from pretzelmaker when you join their eclub.

Red Lobster

Another place that will give you free coupons on your birthday is Red Lobster.  Just join their Rewards program.

Perkins:  When you join with Perkins you will automatically receive 20% off, and then a special surprise on your birthdays.

 

Non Food Birthday Freebies

If you are looking for some non food birthday freebies, check out these great offers below!

Redbox

Sign up with Redbox to get a free movie rental each year on your special day!

Sephora

You get to choose a free makeup item from Sephora during your birthday month if you sign up to become a Beauty Insider Member.

 

In Conclusion

If you are wondering how to get free stuff on your birthday, I hope this article gave you a few good hints.  You will love receiving all of these free coupons in your e-mail during your birthday month.

 

 

Related Articles:

Birthday Traditions for Small Budgets

Budget Friendly Pancake and Pajama Birthday Party!

LEGO Birthday Party for Under $20

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How to get free stuff on your birthday

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Now you know how to get free stuff on your birthday!

How To Teach Kids About Money

February 25, 2020 By: Sweet Frugal Life11 Comments

Teaching kids about finances.

Teaching my kids how to be smart with money has always been very important to me as a parent.   I believe if they can learn how to handle money when they are young, then they will be much more successful as adults.  Honestly, I would rather them make money mistakes with $5 than make the mistakes with $5,000 (ya know?!?!).  But, it can be hard to know exactly just how to teach kids about money.

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Here are a few things that have helped me to teach my kids about money:

  • Money Confident Kids Website.  This website is full of FREE resources, games, printables and activities to help kids understand finances.  I have found so many helpful information here.
  • Object Lessons.  A few years ago we did this fun object lesson with our kids.  It was a huge success and I loved watching the wheels turning in my kids head as we counted out the money, it’s something I hope to try again one day!

 

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  • Smart Money Smart Kids: Raising the Next Generation to Win with Money by Rachel Cruze and Dave Ramsey.  This book is one of my favorite books I have ever read.  It outlines exactly what to do to give your kids the knowledge they need about money.  I highly recommend it to ALL parents.
  • At Home Money System:  The most successful thing I have done to help my kids learn about money is through our simple money system.  Having an at home money system gives kids a hands on approach to budgeting, saving and spending.  I am sharing all of the nitty gritty details with you about this below!

Allowance

Yes.  My kids get an allowance.  No, they are not spoiled.

I know, I know!  Allowance kindof has a bad rap, and a lot of people don’t understand why we use one.

I get it!  Many people think allowance is a handout, and do not want their kids to grow up  spoiled or entitled.

So why then would I give my kids an allowance???  Well, I will tell you!

I believe that there is a right way and a wrong way to use an allowance.  If done correctly an allowance can be a wonderful TOOL in helping kids learn how to spend wisely.

kids and allowance

Here’s the thing…..I received an allowance as a child….but, I was expected to buy my own clothes, make-up, shoes, extra curricular activities, outings with friends, etc.

Honestly, I grew up to be very responsible with money, I did not become spoiled, entitled or lazy, I did not expect a free handout once I became an adult, and I believe a big part of this is because I was given an allowance and learned how to manage my money at a young age.

I learned early in life how to budget and save and spend wisely.  Instead of asking my parents to buy me a brand new pair of name brand shoes and being disappointed when they told me it was to much money; I was given a set amount of money and I learned to decide for MYSELF that the name brand shoes were to much money and I would rather shop around for a better deal.  I am so grateful to my parents for helping me to learn this lesson.

  • Related:  This is What Happens When You Give a Teen an Allowance

Using an Allowance as a Tool

So, how do we use allowance as a tool?  I will share with you what has worked for us, and hopefully it will work for you too!

Once our kids turn eight years old they start receiving a small allowance of $5 a month.  This is what I call the “practice allowance.”  The $5 is meant to help them get into the habit of saving and tithing.

We teach our kids to save 20% and tithe 10% to our church.  The rest of their allowance money can be used for spending.

This spending money is usually spent on buying small treats or toys, birthday presents for friends and family or to save up for something a little larger.  (my son is currently saving for a lego set!).

At age 13 the kids graduate from “practice allowance” to a bigger allowance.  They now begin to receive $25/month and are responsible for buying more of their own clothes and activities.

Once they turn 15 the amount will increase again, along with more responsibilities.  My goal is to slowly teach them how to manage their own money and provide for themselves.

The way I see it, I could either pay for their clothes myself and my kids will learn that mom buys clothes.  OR, I could give them an allowance, they can buy their own clothes, and they learn how to manage money and to decide between needs and wants.  Either way the money still comes out of my pocket.

I have been so proud watching my kids manage their allowance.  They save WELL more than the expected 20%, and have been so responsible with their money.

My oldest has learned to shop at discounted clothing stores; such as Ross, TJ Maxx, Uptown Cheapskate, etc.  Instead of complaining to ME when something costs to much, she gets to make that decision for herself.  I honestly wouldn’t parent any other way.

How Does It Work?

Visual learning works great for kids!  So, I have bought my kids these savings tins to help them practice saving, spending and tithing.


I couldn’t find the exact savings banks that we bought for our kids, but I did find a similar version on Amazon here!

These tins help to make saving money a little more fun for the kids.  My kids love that they have their own key to lock up their very own personal bank.

You do NOT need to spend money on savings banks though.  Feel free to set your kids up with three envelopes or three jars, anything that will store money will work!

The very first things our kids do after receiving their allowance is go get their savings bank and tithe 10% to our church, save at LEAST 20% for their future, such as college and a car.

I pay them using change to make it easier to tithe and save.  If it’s time for their monthly $5 allowance then I will give them 4 one dollar bills and 4 quarters.  They know that two quarters go into their tithing bank, one dollar in their savings and the rest into spending.

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Lessons Learned

The lessons I have seen my kids learn since implementing these methods have been HUGE and absolutely PRICELESS.  A few of the things I have watched them learn are:

1. Their future is important to them

Kids care about their future.  If we give them the opportunity to care, they will!

I have been so impressed with my kids as I’ve watched them save MUCH more than the required 20%.  They understand that they will be responsible for a lot of their future expenses and are very motivated to save for those moments.

We talk often about their future and the expenses coming.  They understand that they will need to buy a car, help pay for college and provide for themselves as adults.  Because of this conversation, they work hard to save and plan ahead.

2.  Some things are just not worth spending money on

Each of the kids have had moments in the store when they have fell in love with a toy.  I always remind them that they have their own money to spend and if they want to buy it they can.

Once I give them the choice to buy it themselves with their own money, they pause to really think about this decision.  Some times, they use their money and buy what they want.  Other times, they decide it is not worth spending money on.

I love watching them make these choices.  They learn so much more by making the decision themselves, rather than me saying it’s not worth the money.

3.  The harder they work the more money they will have

You might be wondering about this section…..yes.  My kids are paid an allowance (not connected to chores).  They also know that money comes from working hard.

How does this work?  I will explain it to you!

My kids do not get paid for the majority of their household chores.  I believe that helping keep the house clean is just part of being in a family and should not receive payment.

However, I do pay the kids for what we call “extra chores.”  These extra chores are chores above the basic house cleaning.  My oldest gets paid for mowing the lawn and my youngest gets paid for feeding the dog.

Whenever they want to earn extra money, they can ask me for an extra chore, and I will give them one.

4.  It feels good to give.

Our kids are taught that paying a tithe to our church is a way to help and bless others who might not have much money.  We also believe that our Heavenly Father blessed us with our wealth, and will bless us by giving back to Him and His church.

Instilling this into our kids have been a huge blessing.  I love watching them give to others and to our church.

how can i teach my kids to spend money wisely

In Conclusion

These are the things that have worked well in my family.  I have loved watching my kids make mistakes with money and then learn from those mistakes.  It’s not always easy to see them fail….but the lessons they learn afterwards are worth it!

What works for one family won’t work for all families.  Try a few of these ideas out, find what works for your family.  Your kids will thank you when they are older, I promise!

 

Related Articles:

What I have learned about living a sweet and frugal life on ONE income

Money Lessons for Kids: The night we taught our kids the TRUTH about money

The Envelope Money System: A Beginners Guide

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I hope this helps you learn how to teach kids about money.

Hello! I’m Melanie!

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