Teaching Kids About Money

Parenting, Kids, Being a Mom, Money, Saving MoneyGreenbacks, dough, bucks, benjamins, bread, moolah, bills, cash… Whatever you choose to call it, teaching kids about money is an important job as a parent. It can also be a difficult job.

My stepmom gave Cady a little bank at a family gathering when she was about two years old. Everyone at the party gave her some change so that her bank wouldn’t be empty. After she emptied their pockets of all the change she said, “now, who’s got some dollars?” Did she realize the power of money? Oh heck yeah. But even six years later it is harder for her to grasp the value of those dollars.

Recently I’ve implemented a payment for work plan at our house for Cady. I assigned a dollar value for different chores around the house. For example, emptying and reloading the dishwasher earns her $2, gathering all of the dirty laundry around the house and bringing it to the laundry room earns her $1. I keep track of the work she does around the house, and she gets paid once a week on Friday.

This method has three benefits.

  1. It teaches her that you have to work to earn money.
  2. I don’t have to yell at her to get her to do things around the house.
  3. She has learned that if there is something she wants that I will not buy all she has to do is work around the house and save the money to buy it herself.

She still has regular, non-paying chores around the house, and if I have to yell, beg, or coerce her to get her to do something then she does not get paid.

This past weekend she discovered the joys of internet shopping. There was a doll that she really, really wanted that I would not buy. She had enough money saved so she came to me with her idea. “Mom, if I give you the money I have saved will you use your credit card to buy the doll for me?” I did, and now she is waiting anxiously for her very first online purchase to be shipped to her this week. I’m pretty sure she is now hooked.

Thankfully there is a website that allows kids to safely shop on the internet using pre-set spending limits established by their parents. Virtual Piggy allows parents to set up an account so that their child can safely shop online. You can set a spending limit for each transaction, and by the day or week and month. You can also limit where your child shops by setting up specific merchants for them to choose from. For me, I can set Cady’s account with the total dollar amount of the money she has earned and she will not be able to spend over that. Basically it is a virtual piggy bank. Pretty sweet.

Your child’s account is linked to the credit card, debit card, or PayPal account that you set up in your profile. Your child can shop online without ever seeing or asking you for your credit card number. Virtual Piggy is PCI-DSS Level 1 Certified, which is the highest level available. Also, you don’t have to worry about your child’s safety while shopping online because Virtual Piggy is a certified licensee of the TRUSTe® Children’s Privacy Program, which has been approved by the Federal Trade Commission as an authorized safe harbor under the Children’s Online Privacy Protection Rule.

Virtual Piggy has two ongoing promotions to encourage parents to try out their site. From now through December 7th, they are hosting a “Win Your Wishlist” sweepstakes. How does that work? When kids go on the Virtual Piggy site they can add items to their wishlist. Parents can view the list and share it with friends and family. Ten children will be randomly selected by Virtual Piggy to receive the entire contents on their wishlist (up to $500).

The second promotion is the Member Value Program. Virtual Piggy is offering hundreds of dollars in discount holiday promo codes to families when they sign up for Virtual Piggy from now through January 15th (some offers will start or end sooner). You can see all of the offers once you set up and log in to your account. The offers will be updated regularly throughout the holidays.

What are your tips for teaching kids about money? Do you think Virtual Piggy is a site that would be useful to you and your family?

Disclosure: This is a sponsored post from Splash Creative Media on behalf of Virtual Piggy. All opinions are my own.

Comments

  1. It is so important to teach kid’s how to handle money. Great post!
    Momma’s Bacon recently posted…Product Review: Boon Whale Pod Bath Toy Scoop, Drain & Storage (All Ages)My Profile

  2. This is a great idea!

    M is really learning about money and saving. I always owe her money for something! It would be cool if she could buy what she wants from a website.

    I’ll check it out!
    Connie Weiss recently posted…Perfect Moment: CuddlesMy Profile

    • There is also an option on the site where you can designate a certain amount be saved. That could be perfect for what you are teaching her!

  3. My tween totally loves internet shopping. When she wants something she steps up her quest to earn money!

  4. This is great! I’m not there yet, but had been wondering how and when to start teaching my son about money. Lots of great ideas.
    June recently posted…Beethoven, shelf fails, new shelf, picture frame.My Profile

  5. Woo Hoo!!! This sounds like it would be great for Marcus!
    Maggie S. recently posted…What We Learned on #GivingTuesdayMy Profile