Morgan's first big purchase

I think I mentioned this before, but right around Christmastime, we starting using the Dave Ramsey's Financial Peace Program for Kids with Morgan to teach her about money. She had to do chores (her usual household "helping" things but this one held her accountable for them each day - awesome all around) and for each chore, she earned a sticker upon completion and would earn a quarter a day. I don't remember how we decided on a quarter a day but we contemplated it for a while before getting there. I'm thinking we'll increase this when she turns 4.

There are 3 envelopes (clear, plastic, zipper so they can SEE the money they've earned) each labeled "give, save, spend." Morgan has an opportunity to earn $2 a week in quarters and puts 2 in each envelope and gets to choose where she puts the extras. When we started this with her, we asked her what she wanted to buy with her spend money. She thought about it a bit but I had noticed that she had been interested in the Toy Story movie and asked if she wanted to save up to buy the DVD. She thought that was a brilliant idea (of course, I thought of it) and started working hard to save.

Today was the day. Well, sort of. The first Toy Story movie is still like, $20 everywhere! And I've looked!! Can you guess how long it would take her to get to $20 on her "salary?" Forever. Finally I told Adam that I think we should either raid her other piggy banks full of coins or go halvsies with her. We agreed on the halvsies and each put in $10. Today she had $9.55 in her spend envelope. We told her that if she'd like to, she could get $.45 out of her piggy bank and have enough to buy her DVD. She of course chose to do so, and we were filled with pride when she independently said,

"WHAT!?!?! I've earned enough money from all my hard work to buy my DVD?!?! YYYAAAAAYYYY!!!!" And did the biggest happy dance ever.

We couldn't have been more elated - she GETS it. She gets that if you want to buy something, you have to work for and earn it. Things don't just get handed to you immediately (well, not ALL the time...). You help out around the house and it pays off. Literally, for her. My friend Abbie brought up a good point that we are paying her for things she does around the house that are a normal expectation as being a member of the household. She's right. That's what we're doing for now, anyway...we wanted her to be successful immediately so those types are the chores we chose. I think it's a great idea for Adam and I to revisit the chores she has and either keep/modify/change them completely. For now, though, it's working for us/her.

We're so proud! And so glad she's going to have this leg up on money as she gets older. And if she chooses to do something different, at least we did all we could to teach her a path that could make money NOT be a point of contention as an adult. Way to go, Morgan!