This is the first year that Daughter Person has received small sums of money directly for any holiday – $5 from finding the affikomen at Passover, and $12 from Easter eggs – and we’re not sure what to do with it. Usually, we’re given a check to put towards her college fund, so we dutifully cash it and transfer that amount to her 529 account. This year, we feel like it should be *her* money, and not go into her 529 account. But, we’re not sure if we can use it to teach her about money – she can barely count to 10, much less understand the concept of dollars and cents. I was figuring I’d wait until she could count to (or at least understand the concept of) one hundred.
She knows we have to pay for things – when we go to the grocery, she’ll carry her bag of goldfish (my bribe to get her to behave long enough for me to actually shop) up to the counter and lay it on the belt for the cashier, but I don’t think we’ve ever discussed amounts – how much we’re paying for things.
I was thinking we could let her buy a doll or other trinket with it, but I don’t think she’d understand the concept of “not enough money” yet – although $17 is enough to buy most of the little things she tends to want/ask for.
The other option is to add it to her savings account – the catch there is that I add a little bit of money there for her every month to use when she’s older. We have a S is for Savings account open at PNC for her – and I think she’d understand the jars “save, spend, share” – but we’re back at the question of what to save for or how much to save. Or maybe it just sits there until she’s ready to learn?
Any of my readers have ideas on introducing money to young ones (she’s just over 3)?