TBO.com - TBO is Tampa Bay Online

A $45 Lesson On Cash For Children

ADVERTISEMENT

The Tampa Tribune

Published: November 4, 2007

I'm pretty observant about where my kids leave their money.

If I see wallets left on kitchen counters or cash stacked on top of a bedroom dresser, I tell them to put it away, and I'll watch them do it. And if there's a wad of bills or loose change in the washing machine that fell out of pants pockets, I'll sometimes claim first dibs on the dough.

I also need to remind them not to leave their wallets in the car - in open view, no less.

When it comes to children keeping track of cash, I'm a firm believer in vigilance. Kids always need to know where their money is, or at least where it's supposed to be. And if some bills slip through their fingers - accidentally or not - they need to understand it is not the parents' responsibility to cover their losses. That may make them grow more careful and responsible.

Now, I feel like my stance has been validated by new research from Visa USA. The study dealt with how adults handle money, but there are lessons for kids, too.

Where Did It Go?

Visa reported that $2,340 disappears from the typical consumer's wallet every year. Think of it: That's about $45 a week slipping through your fingertips.

Most of this cash is probably not lost in the wash cycle. So how does this mystery money disappear without a trace of checkbook entries or receipts? According to Visa, many people don't realize just how much they're spending on nights on the town, hitting the sales at the mall or throwing coins into vending machines for sodas and snacks.

"It's understandable that consumers would lose track of some cash over the course of a week, but we were surprised by how much cash goes unaccounted for," said Wayne Best, Visa's chief economist.

Whether it's a spending spree, an accident or carelessness, a dollar here and a dollar there adds up. That's true whether you're 50 or 15. What the Visa research basically reinforced to me was the importance of children learning to keep an eye on their money - from storing it to spending it - because these habits may carry over into adulthood.

If your children are having trouble holding onto cash, don't overreact by embarrassing or scolding them. That may only rub salt into the wounds. It is perfectly normal for youngsters to have bouts of carelessness. Accidents happen; just keep them from becoming habit-forming.

Your best bet may be buying your younger children a wallet or a coin purse to hold their cash, and maybe even a safe for their room so money isn't left out in the open as a too-tempting target for a 12-year-old guest.

Some Solutions

Maureen Dolan Rosen, author of a workbook called "Kidscash: Cash Management for Kids," required her children when they were young to keep their wallets in their underwear drawer.

"We figured they'd always know where it was supposed to be, and that seemed to be a central place for each of them," she said.

She also posted a sign in her laundry room: "Any money found in the washer or dryer becomes the property of the executive committee."

"That's me and my husband," said Rosen, noting that this "found" money would be donated to charity at the end of the year.

If your young children tend to leave coins all over the house, get them a jar or a bank, and turn it into a game. They can sort the change and practice counting, then put the money into paper rolls to take to the bank.

But if your children are not in the habit of losing money and are sufficiently concerned when it happens, consider advancing them the lost cash. Have them repay it over a reasonable time.

Whatever your response, teach your kids how to deal with these situations. If they need incentive, mentioning the $45-a-week in mystery money might do the trick.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT