Fall in our house = Football.

I actually got Chad to sit down at the computer tonight and write his very first blog post. He is sharing on a topic that I cannot. I see the word frugal and it inspires me, but then I see something that I really love and I forget what the word frugal means. . .

I have been told before that a child’s values, ethics, morals, mannerisms, behaviors, etc are mostly established between the ages of 3 and 7 years old.  I have no facts to back that up but believe a lot of it to be true.  One of the behaviors Amy and I talked about trying to establish with our children was the behavior of saving money.

Yes, I heard some of you just laugh about that since you know Amy missed that lesson as a child to save money.  I know it is a strange concept in America but the recent economy has spurred up some savings by many of the American people lately.

We have savings accounts for the girls that we put money into each month but decided to open another savings account for each of them that I nicknamed their “slush” accounts.  Our intent was to teach them the behavior of saving and to be excited about going to the bank to deposit their birthday or Christmas cash, etc.  We hadn’t even talked to them about the fact that they could spend it and I don’t think it ever crossed their minds either.

Two years past and they had been begging us for Ipods.  I was appalled at them spending that kind of money for them but could see the benefits of them to keep them busy in the car on long trips, the airplane and airports during family vacations.  We were about to go to Disney World so it was good timing to purchase them.

The plan they agreed to was that they would pay for half of the Ipod themselves and we would pay for the other half.  We all agreed it was a great plan and the Ipods were purchased.  We arrived home after the purchase and I sat down at the computer for what I thought would be a great “teaching” moment for the girls to show them how I was going to transfer their half of the purchase out of their savings account to make it real for them.

Little did I know that Madelyn would burst into tears and ask why I was doing that and how she was not going to have hardly any money left in her account.  I felt like a firefighter trying to put out a towering inferno of tears.  Once I gathered myself, I asked her if she knew what a savings account was meant for and she did not respond.  I explained to her that her mom and I have savings accounts as well that we put money into so we can use it for special occasions like family vacations to Disney World or just to stay in a hotel somewhere together as a family for a weekend get away.

The light started to turn on and I could almost see the wheels turning in her head as she began to calm down and did eventually realize that she was putting her money toward a “special” purchase such as this Ipod just like her Mom and Dad saved for “special” purchases or occasions.  It did turn out to be a great teaching moment but I was just not prepared for the initial fury of tears.

Do your children have a savings account? What are some of the special things that they are saving for?