My 8-year-old has a wallet; it came with the backpack he chose for kindergarten (2009-2010 school year he will be in 3rd grade). The wallet has spent most of its time in the dark; keeping his clothes warm. This past week every time we left the house he took it with him and tried to buy various things.
Tonight, we went to Party City to buy a clown nose; afterwards the kids and I decided to go to Outback Steakhouse for dinner. As we were getting out the car; Austin said: ‘Mom, I have my wallet – I will buy my own steak”.
I told him that he was not going to buy his own dinner; I was the mom and that it was my responsibility (but, thanked him for the gesture). If he wanted to spend some of his money that we could go to a bank and open a savings account. Austin explained that if the money was in the bank he wouldn’t be able to spend it. My answer was quite simple: Austin if you allow the bank to store your money for you; they will pay you for doing it. He was astounded! He asked So, if I put my money in the bank it will make more money? I told him he was exactly right.
I do not believe I have ever heard anyone explain a savings account quite so succinctly. I suggested we open him a savings account that he is completely in control of (he already has multiple accounts that we fund; his grandparents fund; and his great-grandparents fund) and he agreed.
Monday Tuesday we are off to the bank. Now, to try to find a bank that offers “passbook savings”. i still have my passbook from my first savings account.
Austin is ready to learn a lesson that many adults still don’t know; pay yourself first. I am going to make a deal with him. I will match every dollar he puts into his savings account for the whole year.
Today’s lesson: Pay yourself first and the bank will pay you to store your money!