Kids kids and money

Kids Negotiating

So we all know that negotiating is a big part of life, especially our lives as real estate investors, right? I think that we would all agree that it’s important for kids to learn how to negotiate (which they really do already, they just don’t know it! lol)

Joe decided to negotiate with me this morning and I was kinda happy about it. For xmas I got “Secrets of the Millionaire Mind” cards in my stocking from Santa. Now they’re not playing cards, they’re 50 cards with different insights from the book printed on them. Like on one side of a card it will say: “Be Accountable for Everything in Your Life” and then if you turn the card over it says: “Rich people believe that they create their lives. Poor people believe that life happens to them. If you want to be wealthy, you must believe that you’re the one causing your success, mediocrity, or struggle.”

So along with Joe’s new incentive program with the mom dollars I decide that I’m going to let him pick one of these cards every morning while we’re eating breakfast and we can discuss it. I fan out the cards this morning while he’s eating his Peanut Butter Captain Crunch and tell him to pick one. He got all excited and didn’t even know what they were yet lol

He picks one and I tell him to read it. Here’s what it said: “Forget Comfortable; Go For Rich” and then I tell him to turn it over and read it and it said: “If your goal is to be comfortable, chances are you’ll never be rich. But if your goal is to be rich, chances are you’ll end up mighty comfortable.” He then just looked at me with this confused look. I asked him what he thought it meant.

He started talking about if you’re going to buy a chair you want to make sure it’s comfortable! lol I told him that he’s definitely right about buying a chair and that’s what comfortable normally means but not so much in this context that we’re using it. So then I went on to explain to him how people say they want to just be “comfortable” when it comes to money and what that means and how they usually end up, etc. And that the card is saying you don’t want to be just comfortable.

He said so having a lot of money is bad, right? I said oh no…what this card is saying is just the opposite. You want to not shoot for “comfortable” you always want to shoot for having as much money as you possible can and if you aim for that, then you’ll turn out to be very comfy in life and not have any worries, plus you can buy or do what you want whenever you want because you’ll have the money to do so.

He was like “hmmm ok.” Then he looked at me and said “why do you guys always do this to me?” And I said “what?” He said, “you know make me read these cards or learn about money and stuff like that.” I went on to explain to him that no matter what school he goes to that they don’t really teach him to be financially educated. They don’t teach you about money or investing or passive income or how to make sure you never have any financial worries ever again in your life….so that means your mom and I are left to teach this to you.

And that’s why I’m doing this cards with you in the morning now and that’s why your mom bought you “Rich Dad, Poor Dad for Kids: the comic book version” and that’s why we’ll continue to teach you a lot of other things as well. I said “Joe, we don’t want you to ever have to worry about money in your life….ever.”

He then looked at me and real serious said “well then when we read these each morning if I get one right when you ask me what I think they mean by that can I get 2 mom dollars?” I laughed and said “you absolutely can!” I went on to tell him that he may not get any of the answers right yet, but I’ll let him try but that after we get through them once, he’ll have all of the answers and as long as he can keep remembering them he’ll earn lots of mom dollars. He said ok!

He then, of course, reminded me to add this to his chart as ways he could earn money! While I was doing that I said “tell you what, for right answers to these cards I’ll give you 5 mom dollars instead of 2!” He said “yessssss!!” and then looked at me and asked why I’ll give him 5 instead of 2? So, I, of course, went on to explain to him that learning about money and finances and making sure you understand all of the different ways you can make money in the future is extremely important to your future and it’s so important that we’ll reward you even MORE for learning it. That seemed to be an acceptable answer for him lol

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Kids kids and money

An Incentive Program for Kids

Good morning everyone! Well Kathy is gone for the next 2 weeks for the most part and the kids are here so you guessed it, I’m taking care of them (mostly Joe, the 9 yr. old.) Kathy and I implemented a new incentive program for Joe in which today is the first day.

It’s called Mom Dollars (well the person who I read about it from calls it Dad Dollars but since there ain’t no dads in this house, it’s called mom dollars.)

mom money

Anyway, it’s a simple program. Each morning Joe has things he needs to do like a) wake his self up with the assistance of a brand new alarm clock b) dress himself for school without be told to and c) be at the kitchen table by 7:20am. If he does these things he gets 2 mom dollars.

Then if he’s done his breakfast and has brushed his teeth and is ready to leave for school at 8am he gets an extra mom dollar. He can accumulate extra mom dollars throughout the day by doing little extra chores. For instance, if he scoops the cat litter pans he’ll earn 1 mom dollar per cat litter pan (there are 5!) or if he loads or unloads the dishwasher he’ll earn 2 mom dollars. If he feeds the cats he’ll earn 2 mom dollars but if he feeds the cats without us asking him to do it he’ll earn double mom dollars. A lot of chores if he does without being asked he earns double.

Ohhh and he earns 2 mom dollars per chapter for any book he chooses to read, but my personal favorite is he earns 4 mom dollars per chapter for any book on business, money, real estate, or personal development (I need to find some kid versions of these types of books.)

Of course you’re wondering what the heck does he do with these mom dollars? Well he’s got rewards he can spend them on. For instance, if he wants a friend over after school that is 5 mom dollars. If he wants to do his homework after dinner instead of after school that’s 5 mom dollars. If he wants to earn 1 hour at the batting cage that’s 10 mom dollars. He can earn the entire family a night at pizza hut if he wants for 20 mom dollars. If he wants to play video games for 2 hours on Thursdays that’s 30 mom dollars (we have a No Video Game rule on Thursdays.) Or he can earn 60 mom dollars to go to a fun place of his choice like chuck e. cheese, laserdome, monkey joes.

Then there are the penalties. If he talks back he has to pay 10 mom dollars back to the bank. If he doesn’t listen the first time he has to pay 10 mom dollars back to the bank. If he says “can’t” for instance “I can’t fall asleep by myself” or “I can’t go upstairs to my room by myself” etc. etc. You get the point….then that costs him 30 mom dollars! Or failing any test is 30 mom dollars too!

We’re trying to teach him about responsibility, earning money plus budgeting your money for things that you’d like some day, plus I want him to never say can’t again because it drives me up a wall. He’ll say he can’t do something that I know darn well he can do then after he tries it he realizes he can do it! And I want him to always get rewarded more so for learning about money and things of that nature. (Note: I’m trying my hardest to ensure that he doesn’t end up financially illiterate like his 17 yr. old brother!)

He just negotiated with me at the kitchen table lol I’ll tell ya about that in my next post after I take him to school. He’s working on being ready by 8 so he can earn 1 mom dollar because he didn’t earn his first 2 mom dollars this morning because I had to go wake him up at 7:05 and tell him to wake up and get dressed (he’s alarm had been going off for 5 minutes lol)

Btw, you can create your own Mom Money or Dad Dollars!

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